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As Americas Finest City turns
August 23rd, 2008 1:41 PM

Jack is pretty accurate. Falling prices will make the investors come back out again. If a property gets low enough, investors will buy it and rent it out. So don't look for prices to fall too far.

If interest rates rise, the prices will also be forced to come down, but the "monthly strokes" which the average Joe needs to pay to qualify won't change much, so that leaves even more opportunities for investors with cash and credit lines to swoop in a snatch the deals.

The fact is if you can't afford to buy a home in San Diego today, you probably are not going to be able to afford one next year or in three years... unless you inherit a big chunk of money for a larger down or your income goes up 30% or more.

That's why it amazes me tha so many people move here to live thinking htey are going ot buy a home. If you didn't sell a home where you came from, buying one here is just a pipedream.

Prices may go down another 20% but when that happens investors with cash will cherry pick first. The smartest investors saw the bubble coming and got out and are now waiting for the prices to get attractive. This a the dirty little secret of San Diego and why 70% of people living here are renters.

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Posted by Dean Bettencourt on August 23rd, 2008 1:41 PMPost a Comment

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