Trulia San D…, Home Buyer in San Diego, CA

Single family home rents are down 0.1% while single family home prices are up 13.4% Y-o-Y in San Diego.

Asked by Trulia San Diego, San Diego, CA Thu Apr 4, 2013

Do these numbers reflect what you are seeing in your own neighborhood in San Diego?

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Hector Gastelum’s answer
I try not to be in the prediction business, but the numbers are inflated due to the lack of inventory. I still believe that buying high is much better than renting low. You have the potential tax advantages (consult your tax advisor) and potential capital gains in the long run, not to mention the pride of ownership.

Being a Homeowner is a great investment for Retirement. I am not optimistic about Social Security when it is my turn, so I have to be ready and I tell my clients and friends to have a property. If you are in your 30s/40s, by the time you pay off your Mortgage loan you should be at that retirement age, wouldn't it be nice to have your home paid off by then?

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
efax 619-270-2516
1 vote Thank Flag Link Thu Apr 4, 2013
I believe Hector. Buying high in SD right now is far better than renting low. San Diego is over 65% built out and the government (Fed, State, County, City) owns a good portion of what's left. Plus SD is an island unto itself.

To the North one of the largest Military bases in the World. To the East, one of the biggest deserts. to the West? The wide open Blue Pacific with some to the best surf and most comfortable waters in the World. To the South a foreign Country with borders and bandits.

Bottom line? If you can buy into the SD RE market don't let the California surf pull the sand out from under your feet.
1 vote Thank Flag Link Sat Apr 6, 2013
FBS operates small rental properties in 69 zip codes throughout the San Diego region for independent rental owners and with reasoned exceptions our rents on 2013 renewals are moving up from 2012. The amount of increase depends upon too many factors for us to make general statements beyond this but it should be noted that our rent collection delinquency continues to be lower as well. We are not quite sure whether this is due to a large percentage of our rents being collected online and/or our residents making a concerted effort to strengthen their credit while they save for major purchases 2-3 years out (including real estate purchases). We even some movement among upwardly mobile professionals to consider a real estate investment purchase BEFORE they personally move. Neil
0 votes Thank Flag Link Thu Apr 4, 2013
The market has actually been on the rise for about 18 months and inventory has been really low for about a year. What a lot of people don't identify is that its the entry level preoperties that have sen 15-20% appreciation during that time while higher end homes ave only seen 2-5% during the same time. Those who bought investment properties or starter homes during this time are sitting pretty. As far as I can tell the bottom was about 2 years ago. On a separate issue some folks talk about "shadow inventory"...but according to the SD County tax assessor records less than 1/10 of 1% or .oo9% are owned by don't count on this magical inventory hitting the market. More than likely things will rise moderately from where they are now until interest rates rise significantly. Still a great time to buy but the window is closing quickly.

As far as rents...all my investors have seen rents increase 5-10% during the last 18 I am not su

re where these stats are derived from? last
0 votes Thank Flag Link Thu Apr 4, 2013

What I am seeing in North County Inland is that rents are stable, or for those who have not made any changes in a while, they are able to up their monthly rental rates. As a general rule of thumb (of course, it depends on the location, condition of the unit,, rentals are getting a solid 1.3-1.4 of the square footage. As for single family homes, wow!! Prices are clearly up with multiple offers, many well above already higher listed prices. It is funny to see human psychology and the herd mentality at play once again. As the saying goes, the "trend is your friend." Unfortunately, any time something is extreme, whether it be a substantial rise or decline in prices, I don't believe it is necessarily the best thing for the market. It will be interesting to see how this all unfolds.


Chad Basinger, REALTOR®, CPA, CFP®
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0 votes Thank Flag Link Thu Apr 4, 2013
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