Just before Christmas, I sent letters to my clients, letting them know how much equity they had accumulated since purchasing their home. I loved writing this letter. Finally, I had some really good news for owners of San Diego real estate. It was downright exciting. What was so exciting? The average increase in equity was $127,000, with some of those clients realizing this much of an increase in just one year of homeownership! I had one client see an increase of nearly $400,000 in just one year! That is not a typo! The amount of equity increase really depended upon which neighborhood a buyer purchased in. I saw much smaller increases in Escondido and I saw huge increases in neighborhoods like La Costa. Carmel Valley, saw a recovery to 2005 prices. The big thing was all but two of these clients had seen equity growth. And those two clients had finally broke even from their 2003/2004 purchases. Now they too can look forward to some decent equity growth in 2014.
What will 2014 bring? Nobody seems to be in agreement as far as what percent we will increase. (For some assessments from real industry professionals, see the December 28, 2013, San Diego Union Tribune article here.) What all of the industry speculations are in agreement with is that San Diego County home prices will increase. It would be nice if I had the ability to predict the future, if I did, I would be a very wealthy woman. I too think we will see increase, how much, who knows. What I do know is that if you can afford to buy a home, and plan on being in San Diego for at least 5-7 years. You need to buy. Not just for the equity increase, which is nice and will add to your overall assets, but for the security and choice that San Diego homeownership brings. Security from rent increases, and eventually the freedom of not having to pay a housing payment at all. Protection from being priced out of being able to live in San Diego. Shutter… In a nutshell, homeownership gives you choices that renting just can’t give you. You can bet, that being a renter will not have you seeing increase in your net assets of $127,000 in one years time. Your landlords, yes, but not yours.
So are you ready to jump in to 2014 with a goal to be a homeowner? Give me a call at 619.405.7673 or email me at firstname.lastname@example.org to see if now is the right time for you to purchase. I’m never too busy to help buyer’s realize their dreams.
If you are homeowner and would like to know if your home has increased in equity or are thinking of moving up, let me know, I would be happy to assist you.
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