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an
ParticipantInteresting how MM didn’t spike like the other areas but also didn’t have the big pullback either.
ParticipantBTW, there’s always reasons to sell and a pile of cash is not the only one. Your spouse died and the house remind you of them. Your kid died in the house and everything about the house remind you of them. You moved for another job in a different city. The neighborhood has gotten worse and there’s gun fights in front of your house. There is constant drug dealing in front of your door. Your kid(s) got bullied so badly that you want to move to a different city. I can go on and on and on.
ParticipantBTW, I said “So, why sell? ” not “there is no reason to sell”. It might sound the same to you, but not to me. One is black/white while the other is not.
ParticipantTrue, you’re right, there’s a pile a cash if you sell. You then give up a lower monthly living expense, a lower interest rate for 30 years, a low tax based (prop 13), the home you’re happy living in, the ability to do what you want to with it (rent out all the room and make a profit while living in the garage), etc. Again, you’re right that you do gain a pile of cash. But you’re losing a bunch of stuff for that pile of cash. It’s not as black and white as you stated.
This is not even talking about the emotional side of that decision. The memories you and your family built in the house over the last few years, the moving of your kids to potentially different schools, the hassle/cost of moving (maybe even storage), the risk of dealing w/ a jackass landlord, etc.
Bottomline is, looking at the supply right now, most people rather not move than selling for the pile of cash. So, obviously, for most, the cons of selling outweigh the pros, that’s why supply is not increasing.
ParticipantDepending on how much you love the lot. If it’s in an older area, a similar lot might not come up often. If you don’t mind buying another house that might not have the lot you want, then I would walk. But if you’ll regret it in the future if it did sell for <$50k less than your offer, then I would buy it if it were me.
ParticipantRich, you’re assuming that you’d get a pile of money. If you bought 2-5 years ago, you wouldn’t. You’re also assuming you can find a rental for less than the interest of your mortgage at 2.x% – 3.x%. You’re also assuming you’d want to uproot your family and kids to move into a rental. You’re also assuming that you want to run the risk of rent not rising and/or home price not crashing.
That giant pile of cash will get eaten up really quick if inflation keeps on running at this transitory rate for the next 10 years. Rent for a small 3/2 in MM is now $3600/month, that’s $42k/year. In 10 years, that’s over $400k in cash gone, assuming rent doesn’t increase over the next 10 years while inflation runs high.
ParticipantMira Mesa
75,000 residents
12 houses for sale
ParticipantNot everyone owns a home and not everyone who lost their job owns a home. Also, if you did lose your job and own a home with a sub 4% interest rate that you bought 2-3 years ago, more likely than not, you can rent it out for more than your mortgage. So, why sell? Where would you live?
May 3, 2023 at 1:30 PM in reply to: Money markets at Schwab now above 4%, tax-free muni now above 3% #902149ParticipantWealthfront is paying 4.3% and 4.55% this Friday.
ParticipantI’ve been following MM area for the last 2 decades and for the longest time, MM’s median has been around the same as San Diego City’s median. However, over the last few years (maybe when 3Roots start building and COVID), the MM median has been pulling away from the City wide median. Also, compare to Clairemont, in the 2000s and 2010s, Clairemont (excluding BayPark/BayHo) median and similar house for house was about 10-20% higher than MM. However, now, they’re closer to parity with Clairemont still having the edge, but not 10-20% edge like it was.
ParticipantDifferent strokes for different folks. Condos tend to make more profit and requires less up front cost. I prefer single family. Different type of renters for different type of property.
ParticipantYes. I did a 5 years lease once and then follow up to that 5 years with a 4 years lease to the same family.
ParticipantCan’t wait to have spring in the rear-view mirror. It’ll be interesting to see how this spring will play out.
ParticipantThis is earth and that is the data. People pay more for new homes in a new community. Those houses are a lot bigger than typical MM houses.
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