San Diego California Home Ownership Becomes “affordable” Again, In Some Cases Less Than The Cost

By Author: Bernard Smith
Total Articles: 2
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The housing market collapse has it's clear winners, new home buyers looking for an affordable deal on a new or resale home for sale in San Diego are finding that home prices in some areas are so low they have made owning less costly than renting. In addition to significantly reduced San Diego home prices a federal stimulus bill and the California budget have both included provisions to make buying a home in San Diego even more attractive for most would be home buyers.

2009 is clearly the year of low prices, everything from homes to stocks to a barrel of oil has fallen significantly in price. Supply and demand factors have thrown the market into a tailspin and created an atmosphere where many homes are and will be sold at prices below their fundamental values. Home buyers should be out in droves considering the prices, the selection, the low interest rates, and the tax credits available for their piece of the American dream, and in fact they are, they just can't find enough financing.

The market corrections ...
... and business failings through out the country and the world have dampened home values in many areas to levels low enough to create many no lose scenarios for today's home buyers. When owning a home is the same cost as renting and you get the added advantage of potential appreciation you have an incredible and rare opportunity for new home buyers to reap the benefits of owning a home, without the downside faced by the previous year's buyers who had far higher monthly costs for owning the same homes.

5 or more years down the road today's home bargains will create a new generation of Americans with equity in their homes. That will in turn help fuel additional appreciation of these homes. The downside of this recession is apparent, the bottom and turn around points are not. However with homes and condominiums it is easy to understand that when ownership cost equals rental costs you are clearly at a fundamental bottom in home values. Having a usable investment (owning a home) that cost no more than the non investment alternative (renting) is not worth zero, i.e. having the opportunity for upside appreciation is not worth nothing, therefore when owning costs the same as rent it is logical and fair to say that those homes prices are at their bottom.

Of course like any market different areas have performed differently over the past few years. Areas hit the hardest by foreclosures have come down in price much greater than areas not afflicted with waves of distressed homes for sale. The greater affected areas offer home prices that are low enough that they are attracting multiple buyer offers, which is another clear sign of a bottom in prices for these homes.

The San Diego Home market is really 100's of smaller markets each with their own fundamentals. Finding a great deal simply takes a bit of determination. Finding the best deals is a fulltime job because of the constant flow of Foreclosures and Short Sales coming and going from the market. Find a good San Diego Realtor®, roll up your sleeves, and go select your piece of the American dream, it's now 40% off!
Rob Presley, San Diego Real Estate Broker, Investor, & Builder has spent
20 years buying, selling, financing, and building San Diego homes. For more information www.prestigerealtysandiego.com.