If I wait long enough, will you see a glut of foreclosures?
The simple answer is no. The experts don't predict foreclosures because most homeowners have equity. 62% of homes have mortgages, and 38% are paid off. Of all the houses in the US, only 1 out of 47 has significant negative equity. This means that if someone can't pay their mortgage, they can sell it, get their equity, and move on with their life.FOR A FREE REPORT, text: buyer to: 619-846-1244.
If people have $50K, $100K in equity they don't let their home get foreclosed, do they? This differed from the great recession of 2008 and 2009 when as many as 40% of homes with mortgages had negative equity.
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Should you buy now or wait?
I see two big reasons to wait to buy. 1. You can't afford the payment/can't get a loan. 2. You're not planning on staying here in San Diego for three years or more. If you had bought the average house last year of $931K, it would be worth $1.1 mill, $169K in equity in a year.
If San Diego is where you want to be long-term and you want to lock in low-interest rates, buy now.
Get your foot in the door, so you can start to realize appreciation, income tax savings, and equity from the loan buydown.
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The average net worth of a homeowner is 40X that of a renter. For renters, it's $6300, and it's $254,000 for homeowners.
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George Lorimers Real Estate Newsletter
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