As you may know, San Diego is referred to as one of the finest cities in the nation. The city boasts year-round warm weather with very mild weather, gorgeous coastline, ample opportunities for businesses, and proximity to just about every hobby or activity one could think of. It’s no surprise that people flock to live in San Diego. But, with home prices forever on the rise (well, for the last eight years at least), it’s becoming more and more difficult for some homeowners to afford the lifestyle. The high prices aren’t just for home buyers but are often just as bad (if not worse) for those who are renting in San Diego. For some, the high prices are just becoming too much for their families to bear.
While home prices in San Diego continue to rise, inventory continues to drop or tighten. If you’re in the market to sell right now, this is great news. But, if you are a first-time buyer or will be in the market to buy once your home sells, you could be in big trouble.
A San Diego Homeowner’s Experience with Rising Home Prices
We recently worked with a homeowner, Phil, who needed to sell his starter home because his growing family simply needed to upsize for more space. When he purchased this home with his wife seven years ago, they intended to fix it up and then resell a few years later. But, as life got busy and they had their first two children, cost and time associated with renovating their starter home fell by the wayside. This was okay, it just meant that if they listed traditionally on the market, prospective buyers may expect for repairs to be made before closing. He decided that he’d rather avoid the hassle and sell the home to a cash buyer, and still pocket a good chunk of profit for their next home purchase.
But, this is when his story got interesting. As we do with all of our clients, we help them through more than just the sale of their home. We set him up with a local agent that could help them find a larger home to purchase next. To Phil’s surprise, there was SO little to choose from on the market and price per square foot has increased exponentially since his last home purchase. After weighing the pro’s and con’s, he and his family determined that their profits from their home sale would go farther in an investment outside San Diego. In their case, this was in Dallas, Texas. Their money for a down payment went so much farther in Dallas, and it just made sense considering what they wanted out of their next family home.
Many San Diego Homeowners Worry about Housing Affordability
And as you may have guessed it, Phil isn’t the only one in this boat. Here at Sell Your House Direct, we work with a good amount of sellers who want to sell their homes, unlock their equity, and move out of state where their dollar goes further. The San Diego Union Tribune recently ran a study that surveyed San Diego homeowners about their interest in moving due to high home prices in San Diego. And yes, a large percentage of folks surveyed (56%) said they had considered leaving the area because of rising costs.
Use Home Sale Profits to Invest Somewhere More Affordable
By no means are we marketing that homeowners should pick up and move out of state (because let’s face it, there’s a reason for the price tag to live in the sunshine state), we simply know that for some, housing affordability is a big problem. If you find yourself struggling to keep up with mortgage payments, or you’re worried that when you sell your home you’ll be priced out of the market, your best option may just be to invest elsewhere. If you’ve decided to sell your San Diego home and relocate to a more affordable area, a cash buyer like us can help in making the transaction smoother. Relocating comes with its own list of to-do’s and expenses, so avoiding listing your home traditionally may help you keep more in your pocket.Views: 8