Home Buying in San Diego>Question Details

james, Home Owner in San Diego, CA

What is expected % rise thru this year. We own a 2 bd condo in Tierra Santa and can rent and hold for another year

Asked by james, San Diego, CA Wed Apr 17, 2013

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16
This is always a personal decision and depends on many factors.

Can you sell it now and at least walk away even or are you taking a loss?
If you rent and hold, are you taking a loss monthly?

The numbers are impacted so greatly by location and which complex you are in...feeel free to contact me directly and tell me which complex...I can give you a better estimate that way.

Take care.
0 votes Thank Flag Link Sun Jul 21, 2013
Great question James. All of these are also fair answers. You have mentioned that your HELOC matures soon, and at this time, you are still $300 short. Therefore, your monthly outlay will increase with time, unless you are able to pay down a large sum of the mortgage balance, or draw the note at 30 years again (i.e., refinance). Under the current favorable market conditions, my family and I would sell the property before any unknown adjustments take place. What's that about having a bird in the hand versus 2 in the bushel? Good luck,
-Steve Seper-
Balboa Park Realty, Broker/Owner
California License #01730524
yourdooropener@gmail.com
0 votes Thank Flag Link Mon Jun 10, 2013
San Diego housing market is looking bright and sunny.According to the latest statistics, home prices are 24% higher than they were last year for attached homes (like townhouses and condos), and the prices for detached homes (like single-family houses) have gone up 16% over the past year. Whether they’re attached or detached.However no one can predict with certainty that this trend will continue through this year.If you are ready to sell, it would be advisable to do so now, when the market conditions tend to favor sellers.

http://www.realtypin.com/news/story/1201-san-diego-s-housing…
Web Reference: http://www.realtypin.com
0 votes Thank Flag Link Thu Apr 25, 2013
Definitely hold and rent for the next year. During this time ask yourself whether you can financially continue to do so. Upon reflection, you might determine that notwithstanding the ongoing leasing, maintenance and risk management of rental ownership you could see yourself as a landlord for your adult life. Once you buy into this paradigm you have unlocked a new financial future for yourself. This will allow you to build wealth and create cash flow that will not be available to others. For now just plan on the next year.
0 votes Thank Flag Link Tue Apr 23, 2013
With more buyers than inventory it is a good time to sell. All realtors will tell you that. Sellers reign. But before you make a decision, think about your personal finances and needs. Do you have cash flow with the property? Start with a competitive market analysis and sellers net sheet and then decide what works best for your personal needs. What prompted you to buy the condo and what goals do you want to set with it. I would welcome the opportunity to discuss your options and counsel you on the market. Call/text 760-613-6889.

Im here to help
0 votes Thank Flag Link Sun Apr 21, 2013
Hello James~

None of us can predict accurately, if we could, most would be retired and very wealhty! :-)
What I keep hearing by local economists is that the shortage of inventory is driving prices up right now, but as soon as we enter summer, more inventory will pick up, which will stabilize prices again. The other rumor that is floating around right now, is the fact that the Fed may ease the "Quantative Easing Program" sooner than planned, because they are concerned about inflation. Should they end the program too soon, could end the recovery.


Where is my Crystal Ball?? The fact is right now there is a housing shortage and prices are going up pretty rapidlly and selling very quickly and usually above the list price. If you are negative $300 per month and have a HELOC, you may want to take a look at what your home is worth and see if it makes sense. Tierrasanta only has 2 active 2 bedroom condos on the market. That's IT!! Let me know if you want a Comparative Market Analysis with no obligation. Let's msee if it makes sense to get out of your monthly loss or hold for another year.

Chris Gorno
http://www.ChrisGorno.com
DRE# 01499885
0 votes Thank Flag Link Wed Apr 17, 2013
Hey James, that's more of a speculative market question, but from what I see is that due to the shortage of homes in the market, prices are being pushed up(supply/demand) basic stuff.
if you want to sell now or later, is up to youre financial needs.
If you believe it's the right time, then call me 619 392-5747.
Sam
Thanks
Cheers !
0 votes Thank Flag Link Wed Apr 17, 2013
Hi James,

Right now, there's not a lot of inventory, so it's a seller's market. Just have an agent on hand to keep you updated on the market. If you want, l can send you listings of all the comps in the neighborhood of your condo. Then, you can keep abreast of all the market activity that will affect the value of your unit. You'd be able to see how many units that are similar to yours pop up on the market, if list prices go up or stabilize, how fast they get an offer, and of course, keep track of sales prices and if they sell higher than the list prices. Just let me know off forum, I'm happy to help.

Regards,
Cory
619-825-6421
c.lascala@cox.net
0 votes Thank Flag Link Wed Apr 17, 2013
Hi James,

I don't predict the future well so won't attempt to do that...the market is good for sellers right now - that's all I know!

The decision to sell vs. rent is basically one that hinges on how much it costs you to hang onto the property vs. taking a loss when you sell.

Homes in the lower price ranges are selling like frigging hotcakes and you can expect to get top dollar in this market.

I offer some innovative listing programs and even help fsbo's to sell their homes. Feel free to give me a call to continue the discussion. I am known for being honest and straightforward.

Take care.

Cindy Davis - 619-379-8616
0 votes Thank Flag Link Wed Apr 17, 2013
All fair answers, impressed by this forum,Thanks much! Rent w mgt fee leaves us $300 month short of covering costs. HELOC matures 11/14, 1 year hold 10% rise tempting if uncertain!
0 votes Thank Flag Link Wed Apr 17, 2013
James,

Don't get too caught up trying to time the market. It's definitely a seller's market right now but it could turn on a dime. A jump in interest rates coupled with more supply will put the brakes on rising home value. From being in the trenches I see things going strong into the summer. A year from now is anyone's guess. Understanding your personal financial goals/needs is key to determining if it's good to sell or not. There can be tax consequences you might need to consider as well. Everyone's situation is unique. If you want to take advantage of a quick sell then now is the time to do it. Tierrasanta is a good location in strong demand!

Royce Kemp
Premiere Properties
858-480-5570
Web Reference: http://www.roycekemp.com
0 votes Thank Flag Link Wed Apr 17, 2013
There are other considerations you should contemplate before deciding when to sell give me a call and I can walk you through them.
0 votes Thank Flag Link Wed Apr 17, 2013
Rent is continuing to rise.

Hold on to your property, it is the best investment for your money! If you manage it correctly and involve a professional you can maximize the return! Good Luck!
0 votes Thank Flag Link Wed Apr 17, 2013
That answer will depend on supply and demand and also interest rates. If inventory and rates stay low possibly 10% or more. But, if I could predict the future I certainly wouldn't be till selling Real Estate after 27 years. Please contact me if you need any Real Estate services in the near future
0 votes Thank Flag Link Wed Apr 17, 2013
Hi James,
That's a tough decision. You can find projections from the experts ranging from 10% increase in home prices in 2013 up to 15% or so. The problem is, you have most likely already seen a 15-20% increase in the value of your home this year. That means the prices could likely go down the 2nd half of the year to have you end up between 10% and 15%.

Just based on that information alone, you might have a 50/50 chance of having the value go up vs down between now and the time you decide to sell. To help decide if you should sell or not, the questions I would ask are:
1.) What is your cashflow on the property as a rental. Does the rent cover all expenses to hold it for another year?
2.) After you sell, what do you plan on doing with the money, or for that matter, why sell at all? Why not keep it as a rental property?

Feel free to contact me to discuss in further detail.

Kevin Sanderlin
Keller Williams Realty
Cell 858-212-4702
kevinsanderlin@gmail.com
0 votes Thank Flag Link Wed Apr 17, 2013
Great question, but no easy answer. Current price increases are exacerbated by extremely low inventory forcing almost auction like bidding. If inventory begins to grow that should slow. Interest rates will have a huge impact. I would think another 10% not out of the question with stability on rates and an easing of the current crunch on inventory.
0 votes Thank Flag Link Wed Apr 17, 2013
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