Lately, we’ve been hearing people talk and seen articles about others cashing in on their home and making a run for it out of San Diego.
While it may sound like an enticing adventure to start over someplace else, I have to ask, why would anyone want to leave San Diego, now or ever, at the risk of never being able to come back?
At a time when homeowners across our country are realizing the overwhelming power of nature that delivers up hurricanes, tornadoes and volcanic eruptions almost out of the blue, others are gearing up for several feet of snow that’ll surely drop on their homes and driveways within weeks. We here in San Diego, as you know, are embracing yearlong sunny, summerlike conditions that rarely dip below 50 degrees or rise higher than 80 on any given day.
At the risk of sounding obviously redundant, I have to ask, why would anyone want to leave San Diego when they realize there is no place quite as wonderful as here?
Beyond the fantastic local climate, there are sound financial reasons why homeownership in this area is a great choice, whether we’re talking about a first-time condo or a move-up residence. Buying a home where you can comfortably pursue your dreams, raise a family, or simply experience the pride and independence of homeownership will actually pave the way toward a more secure future.
Shelter From Inflation
Simply put, owning a home provides a safe haven and shelter from inflation, rent increases and other economic factors outside your control. In addition, San Diegans who weather the “ups and downs” of the market accumulate equity at an astronomical rate compared to those other cities.
When a couple from Smalltown USA has an increase in property value of 10 percent on their $100,000 property, they gain $10,000. Here in San Diego, when your $500,000 home goes up 10 percent, you gain $50,000. When this happens two or three years in a row, the homeowner in San Diego has nearly $170,000 in equity, while the Smalltown USA homeowner has only $33,000 in equity. Ask any homeowner who has Smalltown USA relatives , we average San Diegans are worth a fortune where they are relying solely on their ability to save to better themselves.
Compared to many other coastal cities in California, San Diego has sustained a strong economy into the new century and is poised for growth, as the biotech and high-tech industry continue to attract businesses to our community. This is not the 1980s when the tuna industry left San Diego or the early ’90s when military and defense companies relocated out of state.
We have achieved a balanced economy and demand for housing locally that rests not only on the simple fact that everyone loves San Diego, but also there is a legitimate need for housing for highly paid employees.
We all want to be a few steps ahead of the game and feel like we haven’t been taken by surprise. Maybe that’s what’s motivating some to think about selling and moving out.
Sadly, what’s often the case is that when people leave California, they typically have a tough time coming back. Holding onto your home may be the only way you can afford to live locally when you retire.
Nobody knows what’s going to happen locally. Will prices go up or down? Will interest rates rise or stay low?
One thing’s for sure, market conditions are always on the move. That doesn’t mean you have to go any place soon. Yes, there is uncertainty, but certainly there is no better place to live than San Diego.
Mike Marmion is a regional manager for McMillin Realty in San Diego.