It’s an age-old question that plagues many first-time homeowners, who are ready to move to a new location: when do you sell? Most people contemplate selling their home once they have identified the new home they want to move into. However, this creates a conundrum, do you sell before you identify the new home? Do you list once you find your new home? Do you list your home for sale after you purchase the new home? Each decision is fraught with risk. You can minimize that risk by learning about the real estate market in which you operate and working with an experienced real estate professional.
San Diego county is in the midst of a real estate boom. You have probably seen the new construction popping up all over the city from Point Loma to Chula Vista. Luxury condo towers are popping up in Downtown. Large apartment complexes are being built in Mission Valley, Mira Mesa, and Kearny Mesa. Single-family homes are being torn down and rebuilt every day. San Diego county is in the midst of a boom in its residential real estate market; it hasn’t been this favorable for sellers in many years.
The San Diego Union-Tribune, in its prospectus for 2017, found nothing but positive news from all over the City and County. The Irvine Company, the largest landlord in San Diego with over 6,000 apartments, noted that strong job growth, low unemployment, and tight vacancies in units all contribute to a strong residential real estate market and they do not expect any complications going into the future.
CoStar, a real estate tracker, forecasted that San Diego rents would rise by 3.6 percent in 2017. Consider, the higher rents rise, the higher the demand for property in San Diego.
Additionally, Terry Magee, a defense industry consultant, stated that he expects military personnel numbers to increase in San Diego, especially since the proposed budget increases military spending by over $50 billion. Undoubtedly, many of those millions will find its way into the San Diego economy with more military personnel, more military assets, and overall increased spending.
The 30-year mortgage rate increased 0.6 percent the day before the election. Many industry experts expect the Federal Reserve to increase interest rates which could lead to a buying boom as people try to snap up real estate while interest rates remain low.
But, this buying boom won’t last forever. Recent market data from the Union-Tribune has shown the San Diego real estate market decelerated slightly in February and March. However, keep in mind that “deceleration” means that home prices increased by only 5.7 percent, rather than the national average of 5.9 percent. The slight slowdown could be explained by the already sky-high prices, or because of numerous other factors, there is no way to definitively know for months.
Furthermore, San Diego still ranks at number 14 as one of the major regions in the United States. While it is in the latter half of major regions, it is still a top 20 place to buy and sell.
All of these factors add up to a simple fact, now is the time to sell if you are ready. If you are concerned when to sell your home, you should contact a real estate agent. An agent can go over the best strategy in how to sell your home. You don’t need to do it overnight; you can take weeks or even months to plan your sale, purchase, and move.
Everyone understands that selling a home and acquiring a new one is a careful dance with precise timing. If you sell too soon, you have to live in a motel until you can complete the purchase. If you sell too late, you are stuck paying down two mortgages. That is why you may want to retain the assistance of a real estate agent, to shepherd you through the process.