“With the market no longer so overheated, I plan to wait a few years for prices to go down. I don’t have anything to loose. When do you think the market will turn around?”
***ANSWER:
Let’s talk supply and demand.
Our economy is vibrant and unusually well-diversified (tourism, military, defense, telecommunications, electronics, computers, biotech, software, international trade, etc.) And, we have the weather. For all these reasons, some 60,000 people per year move to San Diego.
There’s plenty of demand. So let’s talk supply…
With Mexico to the south, the ocean to the west, & Camp Pendleton to the north, theres little room to grow and increase supply. Further, construction costs keep going up due to huge demand of materials from China. And rebuilding New Orleans will nudge up prices too.
So what does a limited supply and strong demand do to home prices? It pushes them UP. And during normal market cycles it supports them from experiencing much of a “correction”.
Here’s my advice:
As long as you’re not planning to “flip” a home in a year or two, you might want to take advantage of the lower interest rates, buy now, and start enjoying the benefits of homeownership, like tax deductions, loan pay-down, pride of ownership, stability, and more.
Just my opinion…
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