Buying before 2010 (at the earliest) in San Diego is a fools game. Example: If you buy now at what appears to be a bargain for $500k, it’s most likely going to be worth $400k (or less) by 2010. That extra $100k plus the long term interest, higher property taxes etc, are like flushing money down the toilet: Not to mention your resale value if you have to sell due to transfer, job loss, divorce, etc. I just don’t understand why people are rushing to buy at this time. The economy’s certainly not headed anywhere but down for the next year (++).
There are plenty of markets around the USA that are probably close to their individual “bottoms” and some are in CA. Example: I can understand why TG bought in Temecula since that area is probably close enough to it’s bottom but as the pain train moves closer and closer to the more desirable area, the prices will only fall further. The Forbes article is right on the money and if you’re thinking about signing on the dotted line for a new mortgage in 2009, you’d be wise to give it a whole lotta thought before picking up the pen.
