[quote=svelte]What you don’t mention is how long you plan on keeping the home and/or staying in San Diego.
I think you have to go into a home purchase with the mindset that you’ll keep it at least 5 years, and hopefully 10. Property values will be higher in 5 years in most cases, and will surely be higher in 10 years.
If you’re planning on selling in 2, 3, or 4 years – well then it all depends on how much risk you are comfortable with. There certainly could be a temporary price dip in that time period.
Another reason to buy: sounds like mortgages will be easier to get in 2015, which means more folks will buy, which means more demand on the housing market.
I agree the timeframe you plan to hold the home is key. If it’s a home you plan to stay with for 7 years or longer – that helps amortize the transaction costs associated with buying/selling. If you plan to “move up” in a few years… keep renting.
Is your job likely to stay here in San Diego – or could you be transferred?
There are opportunities out there- especially if you’re ok with something that needs some work. My block had two houses sell for a $200k difference within 2 months of each other. One was fixed up and fancy, one was dated. Buyer of the cheaper one is in process of spending about $50k for new kitchen/bathrooms/flooring. But most buyers don’t want to bother.
