Is Now a Good Time to Buy a Home in San Diego?
2020 has been a strange year. The coronavirus pandemic wreaked havoc on the economy, leading to exceptionally high volatility. Meanwhile, interest rates have dropped to record lows. So, you might be wondering whether now’s a good time to buy a home – and this post should help you answer that question. Let’s take a look at the different things you should consider when making this important decision.
Volatility and Home-Buying
Perhaps the biggest factor you should take into consideration is the extreme market swings that have happened this year. The US economy went from a bull market to a bear market and back in quite literally record time. Economic trends have been wildly unpredictable – and that’s because we’re in unchartered territory.
The coronavirus pandemic has been a foray into the unknown. Therefore, the usual metrics have been less meaningful – and analysts’ economic predictions extremely inconsistent. What this means in terms of home-buying is that uncertainty is high. And when you’re making one of the largest financial decisions of your life, that may elevate the risk involved to a level higher than you’re comfortable with. It’s hard to say where house prices will be going next, after all.
A Seller’s Market in San Diego
We may not know where house prices are going next, but we do know where they are right now. And according to the current data, it’s a seller’s market. This means that conditions are prime to sell your property – not to buy. The opposite – a buyer’s market – is the environment in which you would ideally buy a San Diego home. That being said, not all decisions regarding the buying and selling of property can be based on the current market.
Interest Rates
This has all sounded rather negative so far. But there is a silver lining in the economic effects of the coronavirus pandemic – and that’s record-low interest rates. How much you pay in interest – day after day, year after year – is the single most important determining factor in how much your mortgage will cost you. You can buy in the right market circumstances and easily end up with a high – and therefore expensive – rate.
It’s certainly worth considering how much you could save with interest rates as low as they are now – especially if you want to fix your rate (i.e. lock it in over an extended time period, so it stays the same regardless of what interest rates do overall). Reach out to us today for a no-obligation chat to go over your options – and potential savings. This applies to refinances too!
Your Personal Situation
As with anything, there’s no one-size-fits-all answer to the question of home-buying in San Diego right now. By and large, it will come down to your individual circumstances. How has the coronavirus pandemic affected your job? Are you making less money? Is your employment stable? How is your employer doing through all of this? It’s key to take a good hard look at your financial situation and make sure that you’re in a stable and secure place from which to make a big and important decision.
So, there you have it: four different considerations to make when deciding whether now’s a good time to buy a home in San Diego. It’s a pretty complex question – and there are a lot of nuances involved in the answer. That’s why it’s probably a good idea to ask us, the experts at UW Funding, to help you out. We can take a look at your unique situation and figure out whether it’s the right time for you. Get in touch today and we’ll answer that question together!