When is the right time to buy a home? I don't want to purchase right before a market down turn or just before interest rates go up, but how do I know? Since the beginning of time, these are the questions at the forefront of to buy or not to buy. Well, I'm here to give you the latest truth (or lack there of) around the health of the 2018 San Diego real estate market and why you can never be too sure.
According to the March 2018 issue of San Diego Magazine, they featured responses from three local experts around when the San Diego housing bubble is anticipated to pop. You'll find in the responses below, the variance between each opinion, while still remaining relatively neutral.
"But in San Diego, we’re already closer to the Santa Barbara effect of just being a very expensive coastal community. Housing prices and rents are going to be relatively stable, and vacancy rates extremely low." - Nathan Moeder, adjunct professor of economics, UC San Diego and principal, London Moeder Advisors real estate group
“We’re at an all-time high, and there’s such a low inventory ... We’re not past the point of a downturn, but if you sit on the sidelines too much, you could be sitting there for a long time waiting for the crash to happen. I just don’t know if it’s going to come.” – Drew Lyon, broker/owner, Harcourts Avanti
“Historically, there’s a bubble that pops every 13 years. But in San Diego, it’s its own market ... The market shows neither the valuation nor the behavior of a bubble." – Josh Taylor, realtor, Live. Love. San Diego Homes
Can you ever really be sure of something that fluctuates so frequently? In addition to these expert opinions, recently California has ranked no. 1 in the worst quality of life in the 50 US states. Completely counteracting that study is the graphic below that states although we may rank low in quality of life, the median home price continues to increase beyond the rest of the U.S. So, tell me how can Californian's believe they lead lives with low quality, yet continue to want to establish their lives here? Something isn't adding up. I will say from my own personal belief that this study didn't include San Diego, as we're just too happy and our city is too awesome :)
All of this being said, I recommend that you always connect with a professional real estate agent for advice as it simply isn't just a one size fits all answer. There are multiple contributors that determine what the circumstances will be for you, depending on if you're purchasing an income property, a long-term vs. short-term investment, the area you're looking to buy in just to name a few. Have a specific question you need addressed? Let's connect, I would love to meet you and offer the right expertise for you.