Although individuals who purchased a home around the peak of housing prices in November 2005 have yet to see a full recovery, the San Diego market is beginning to stabilize. Home prices have increased slightly during each of the past two years and are likely to continue to gradually firm. However, a continued release of foreclosed properties will continue to keep a lid on any significant appreciation.
Homeownership should not be regarded primarily as an investment but as a lifestyle choice. Renting may be a more appropriate option for many, such as for those who may not know how long they might be in one location or for those who are not able to handle all of the responsibilities of home ownership.
Yet, the severe drop in home prices has made housing affordable to many more potential homebuyers in San Diego. The current low level of prices and mortgage rates could represent a unique opportunity to realize the “American dream” in one of the best environments and communities anywhere.