Owning a home in San Diego can be much more cost-effective than renting an apartment
Renting an apartment or housing unit might be an attractive prospect for a person with a limited budget. Many leases are signed on a year-by-year basis, and monthly prices can be negotiated with landlords to avoid unsuspected charges. However, the common perception that renting is cheaper than buying is absolutely incorrect, especially when it comes to homes for sale in San Diego. Recent data published by various industry professionals provides evidence that people in this southern California city should in fact be buying instead of renting.
"I don't think this has ever happened before," said G.U. Krueger, a principal economist for HousingEcon.com, according to the North County Times. "It's a function of the huge housing price collapse which has left a lot of people in the lurch."
Traditionally, normal market trends dictate that higher monthly mortgage payments and property taxes cause the cost of owning a home to skyrocket. However, in San Diego and the southwest Riverside counties, this is certainly not the case.
The North County Times recently analyzed market data from these regions going back as far as 2007 to discover the reason behind this unique trend. The foreclosure boom in the middle and end of the decade destroyed the credit of many former homeowners, some of whom were in turn forced into renting property. Investors who snatched up foreclosed property sometimes turned it into rental units, which in part caused prices for regular houses to decrease greatly. The interest rates in the current market are at a 40-year low, which means after the down payment, most homeowners enjoy a lower monthly payment than those renting apartments.
This information is bolstered by the recent homes.org report that is making waves in the San Diego real estate market. These figures showed that the market is experiencing an unprecedented surge in popularity, as well as the lowest prices for listings seen in many years.
Therefore, now is the time to consider buying a home in this beautiful locale. Renting might be detrimental to your future home financing, so if you have the capital saved to make a down payment or contribute to an escrow fund, you should begin looking at the MLS listings in the greater San Diego area.