Short-timer

[idea_boy]

I don't really know if Tam still follows LJ that much so she may or may not want me to post this, but

Comments

[writtenoutloud]

congrats!!! SD is lovely!!!

[idea_boy]

Yes it is, and thank you. She grew up in SD and has been wanting to be close to her family for a while. Now we're going to be really close.

[mrs_budzisz]

Congrats!!! : )

[aapostrophe]

the housing market in san diego is tanking. yes, that means you can get a lot more for your money right now, but do some research and you'll find that prices are expected to drop a lot more. as in buy now and in six months, the house is worth a significant amount less than you paid for it. As in you buy today for say 400,000 but next year the house next door same model sells for 300,000. you guys seem to move around frequently, so you may not live there long enough for appreciation to start up again and save you from having to sell at a significant loss.

There is a ton of information about this on all sorts of reputable sites like Bloomberg, The Wall Street Journal, etc etc.

here's a link to a recent article, but do a search for a san diego Case-Shiller graph. you guys should seriously consider renting a nice place until this thing settles down.

http://www.signonsandiego.com/uniontrib/20080430/news_1b30housing.html

[idea_boy]

The big thing is that we can find a place that we can upgrade/build on and make more than will depreciate in the next 6 mo - 1 yr. Tam's dad is a contractor and can do most/all the work with us and get the materials at contractor's costs.

I also don't see us moving for at least a few years if at all from SD. There are a lot of factors that will keep us there, especially if we add to our family like we're hoping to do.

I think the next six months will be the end of the decline and would prefer to get something before the bidding wars begin again.

[mrs_budzisz]

I say forget the market. Find a place you love, make it your own "home sweet home", and it will be worth every penny. Our place is probably worth the same or a little less than it was when we bought it three years ago. But we really love living here, and that's all that matters. : )

[aapostrophe]

this is a lovely sentiment, and home sweet home and all that- and i definitely agree on that level. especially if you are staying put for many years and don't need to worry about the ups and downs of the market. but for the price points in these cities that are going through massive corrections from a huge upwards valuation, a 20% drop in value can be devastating and something to take into consideration when buying.

imagine trying to sell your $600,000 house, and instead of having a profit or even just breaking even, you have to bring 90,000 dollars to the closing table just to get out of the contract and move on because prices dropped 15% from when you bought.
In reality, San Diego has already dropped 19% and is expected to fall further. this is not an alarmist conspiracy theory- it is an absolute reality for many people these days.

[supreme_nothing]

That sounds like it's gonna rock, so all the best to you!

What Mel said is pretty sound from what I've gathered, so listen to the lady. Then again, ya'll are pretty smart cookies and I'm sure you've already pondered these variables...

[cs_smith]

Wow, that was quick. You guys don't stay put for very long. Best of luck in your adventures further south.