At a time when home prices are climbing ever upward, should you buy now? The answer will surprise you for reasons you haven’t even considered.
Two new(er) factors
Unlike the previous times of rapid price increases, this time we all have to contend with 2 factors not seen in previous years. 1) The change in lending rules that require a lender who makes an inappropriate loan to then have to be responsible for the loan (i.e. pay for it) and 2) an unprecedented wave of investors buying up individual homes to hold and rent them out for a profit. These two factors alone will derail any possible downturn on the scale of The Great Recession. There will be downturns at some point. They will not be on the scale of the Great Recession.
Again, unlike years past, this year we are not seeing a greater number of sellers coming on the market when they realize how much they stand to gain. Instead we are seeing the opposite. The number of homes for sale as well as the number that actually sell continues to decline. This is true across the country but particularly true in Southern California and especially true in San Diego which has been among the leading markets in this trend.
So we have more capable buyers, both financed and cash buyers, chasing fewer and fewer homes each month. It really should not surprise anyone that all of this will result in continued upward pressure on home prices. Should you buy now? The answer, as I said, is a resounding “Yes”. The reason is quite simply that by this time next year you may well find that the home you liked so much is no longer within reach, financially speaking. It is often said that fortune favors the bold. It’s time to be bold.
To prepare yourself for buying a home, contact me at 760 622 5087 or firstname.lastname@example.org