Here’s how buyers and sellers can both take advantage in today’s market.
So, which is better in today’s market?? And the verdict is…both are great, depending on your timeline and your short and long term goals.
Let’s address buying first.
It is really simple. If you are planning on living in the San Diego area for more than a few years, it is a no brainer – you buy immediately to take advantage of the historically low interest rates (saving you thousands of dollars over the life of the loan – 100k plus). The alternative is to rent and if you don’t mind paying ridiculously high rent then go for it. I’m talking 3k to 6k per month. I’d rather use that money to pay down my own mortgage and invest in my future.
Regarding selling. If you are planning on moving out of CA then I would sell immediately. No one knows if they market is going higher or lower and it is impossible to time the market. Sell your home now and take all that appreciation/CA money with you. Now, if you are planning to downsize or upgrade to a larger home here in San Diego County it really doesn’t matter when you sell. If the market goes up, then you make more money on the sale of your current home, but the cost of your new home will also rise. Same thing if the market goes down. You don’t make as much money on the sale of your home, but your replacement property doesn’t cost as much so it doesn’t really matter when you sell.
Now with that said – if interest rates rise significantly due to inflation, then all bets are off. The market will completely change and that my friends, is another video.
