Just relocated to SD & want to move to Del Cerro area… buy or rent?

[lmack]

My husband and I (and our 8 month old son) just relocated to San Diego for my husband’s job. My parents live in a 2 BR condo downtown, so we are staying with them right now, and our stuff is in storage while we are figuring out what to do. We are torn between renting for a year (would be our 4th rental apartment in 5 years) or buying. We are pretty sure we would like to move to Del Cerro because my husband works in Hillcrest and I will be working at Alvarado Hospital. We have about $200k saved up for a downpayment, so we’d be looking for a house in the $600-$650 range. My husband thinks we should rent in the area and wait for the housing prices to drop more, but I’m so sick of moving and so tired of throwing our money away on rentals. Do you think the Del Cerro housing market is going to drop considerably in the next year or two? Would it be smarter to try and wait this out another year or so? Also any insight on the Del Cerro housing market would be very helpful. I’ve been looking on the MLS site, but haven’t found a realtor because we haven’t decided if we are going to buy right now. Thanks!

[SD Realtor]

Hi lmack –

As a fellow renter who has been doing the multiple houses in multiple years I can understand your spot. However, I cannot advise strong enough to sit tight for another year or two if you can. The good part is that you already have your stuff in storage so that dynamics of one more rental is not to tiresome for you. Also in 2 years you may indeed find that your money will go alot further. The nicer parts of Del Cerro have held up fairly well against the cycle downward but Del Cerro has no teflon wall around it and will follow the market just like other nice neighborhoods. I am not sure what your definition of considerably is. Also the composition of your purchase, (how much you will come in with using cash verses what you finance) is important. While I do believe we will see depreciation I also believe we will see higher interest rates as well. So given the numbers you stated above, given another year or two if you can bank another 50k perhaps, earn some interest on the 200k, and let prices slide a bit, even with higher mortgage rates you should enjoy more buying power and lower property taxes.

Also I am not sure how familiar you are with San Diego. Have you lived here a long time prior to coming back here? Is there a compelling reason you have decided on Del Cerro? It is a very nice area; I know it well and have friends there but I still would advice to rent if at all possible for another year or two so that you can get real familiar with the area.

[SD Realtor]

Hi lmack –

As a fellow renter who has been doing the multiple houses in multiple years I can understand your spot. However, I cannot advise strong enough to sit tight for another year or two if you can. The good part is that you already have your stuff in storage so that dynamics of one more rental is not to tiresome for you. Also in 2 years you may indeed find that your money will go alot further. The nicer parts of Del Cerro have held up fairly well against the cycle downward but Del Cerro has no teflon wall around it and will follow the market just like other nice neighborhoods. I am not sure what your definition of considerably is. Also the composition of your purchase, (how much you will come in with using cash verses what you finance) is important. While I do believe we will see depreciation I also believe we will see higher interest rates as well. So given the numbers you stated above, given another year or two if you can bank another 50k perhaps, earn some interest on the 200k, and let prices slide a bit, even with higher mortgage rates you should enjoy more buying power and lower property taxes.

Also I am not sure how familiar you are with San Diego. Have you lived here a long time prior to coming back here? Is there a compelling reason you have decided on Del Cerro? It is a very nice area; I know it well and have friends there but I still would advice to rent if at all possible for another year or two so that you can get real familiar with the area.

[SD Realtor]

Hi lmack –

As a fellow renter who has been doing the multiple houses in multiple years I can understand your spot. However, I cannot advise strong enough to sit tight for another year or two if you can. The good part is that you already have your stuff in storage so that dynamics of one more rental is not to tiresome for you. Also in 2 years you may indeed find that your money will go alot further. The nicer parts of Del Cerro have held up fairly well against the cycle downward but Del Cerro has no teflon wall around it and will follow the market just like other nice neighborhoods. I am not sure what your definition of considerably is. Also the composition of your purchase, (how much you will come in with using cash verses what you finance) is important. While I do believe we will see depreciation I also believe we will see higher interest rates as well. So given the numbers you stated above, given another year or two if you can bank another 50k perhaps, earn some interest on the 200k, and let prices slide a bit, even with higher mortgage rates you should enjoy more buying power and lower property taxes.

Also I am not sure how familiar you are with San Diego. Have you lived here a long time prior to coming back here? Is there a compelling reason you have decided on Del Cerro? It is a very nice area; I know it well and have friends there but I still would advice to rent if at all possible for another year or two so that you can get real familiar with the area.

[SD Realtor]

Hi lmack –

As a fellow renter who has been doing the multiple houses in multiple years I can understand your spot. However, I cannot advise strong enough to sit tight for another year or two if you can. The good part is that you already have your stuff in storage so that dynamics of one more rental is not to tiresome for you. Also in 2 years you may indeed find that your money will go alot further. The nicer parts of Del Cerro have held up fairly well against the cycle downward but Del Cerro has no teflon wall around it and will follow the market just like other nice neighborhoods. I am not sure what your definition of considerably is. Also the composition of your purchase, (how much you will come in with using cash verses what you finance) is important. While I do believe we will see depreciation I also believe we will see higher interest rates as well. So given the numbers you stated above, given another year or two if you can bank another 50k perhaps, earn some interest on the 200k, and let prices slide a bit, even with higher mortgage rates you should enjoy more buying power and lower property taxes.

Also I am not sure how familiar you are with San Diego. Have you lived here a long time prior to coming back here? Is there a compelling reason you have decided on Del Cerro? It is a very nice area; I know it well and have friends there but I still would advice to rent if at all possible for another year or two so that you can get real familiar with the area.

[SD Realtor]

Hi lmack –

As a fellow renter who has been doing the multiple houses in multiple years I can understand your spot. However, I cannot advise strong enough to sit tight for another year or two if you can. The good part is that you already have your stuff in storage so that dynamics of one more rental is not to tiresome for you. Also in 2 years you may indeed find that your money will go alot further. The nicer parts of Del Cerro have held up fairly well against the cycle downward but Del Cerro has no teflon wall around it and will follow the market just like other nice neighborhoods. I am not sure what your definition of considerably is. Also the composition of your purchase, (how much you will come in with using cash verses what you finance) is important. While I do believe we will see depreciation I also believe we will see higher interest rates as well. So given the numbers you stated above, given another year or two if you can bank another 50k perhaps, earn some interest on the 200k, and let prices slide a bit, even with higher mortgage rates you should enjoy more buying power and lower property taxes.

Also I am not sure how familiar you are with San Diego. Have you lived here a long time prior to coming back here? Is there a compelling reason you have decided on Del Cerro? It is a very nice area; I know it well and have friends there but I still would advice to rent if at all possible for another year or two so that you can get real familiar with the area.

[EconProf]

With prices now falling at least 1% per month, waiting one year will save you $50k to $100k.

Your tradeoff is quite simple: Is the pain of moving worth that amount of money?

[EconProf]

With prices now falling at least 1% per month, waiting one year will save you $50k to $100k.

Your tradeoff is quite simple: Is the pain of moving worth that amount of money?

[EconProf]

With prices now falling at least 1% per month, waiting one year will save you $50k to $100k.

Your tradeoff is quite simple: Is the pain of moving worth that amount of money?

[EconProf]

With prices now falling at least 1% per month, waiting one year will save you $50k to $100k.

Your tradeoff is quite simple: Is the pain of moving worth that amount of money?

[EconProf]

With prices now falling at least 1% per month, waiting one year will save you $50k to $100k.

Your tradeoff is quite simple: Is the pain of moving worth that amount of money?

[poway_seller]

Unless you are set on the area, then inventory is pretty tight, although could be likely that more and more places at the bottom of the hill will come online. This Raymar place you are interested in is not distressed and seller doesn’t “have” to move. Although rumor is she has another place on the other side of College as well, so would likely be inclined to sell one of them. Perhaps you contact the seller directly and try to get her to sell you the other house that is not even listed yet.

[poway_seller]

Unless you are set on the area, then inventory is pretty tight, although could be likely that more and more places at the bottom of the hill will come online. This Raymar place you are interested in is not distressed and seller doesn’t “have” to move. Although rumor is she has another place on the other side of College as well, so would likely be inclined to sell one of them. Perhaps you contact the seller directly and try to get her to sell you the other house that is not even listed yet.

[poway_seller]

Unless you are set on the area, then inventory is pretty tight, although could be likely that more and more places at the bottom of the hill will come online. This Raymar place you are interested in is not distressed and seller doesn’t “have” to move. Although rumor is she has another place on the other side of College as well, so would likely be inclined to sell one of them. Perhaps you contact the seller directly and try to get her to sell you the other house that is not even listed yet.

[poway_seller]

Unless you are set on the area, then inventory is pretty tight, although could be likely that more and more places at the bottom of the hill will come online. This Raymar place you are interested in is not distressed and seller doesn’t “have” to move. Although rumor is she has another place on the other side of College as well, so would likely be inclined to sell one of them. Perhaps you contact the seller directly and try to get her to sell you the other house that is not even listed yet.

[Author]

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