Why San Diego Is In The Single Greatest Move Up Market Ever

People ask me every day how the market is doing.  As I have said before, the market can only be evaluated on a location and price point basis.  The one thing I do know for sure that can be applied to all price points is that San Diego is currently in the middle of the single greatest move up market we have ever seen.

Surprised?  Simple math will demonstrate that you shouldn’t be.

Let’s assume that back in 2007 you owned a home that was worth $700,000 at the time.  Now let’s assume that your true absolute dream home had a value of $2,800,000.  That means that you were $2.1 million dollars from the home of your dreams.

Fast forward to today and your home that was once worth $700,000 may be worth $500,000.  Seems like a bad thing on first glance, but the beautiful thing about it is that your dream home that was once worth $2.8 million is now worth only $2 million, which represents roughly a 30% drop for both properties.  That means that you are now only $1.5 million away from making your dreams come true.  In other words, you closed the gap by $600,000 without doing a thing.

This is actually a fairly conservative calculation because in some markets values dropped far more than 30%.  In areas like Chula Vista, where values dropped by up to 50%, the opportunistic nature of the current market for move up buyers becomes even more pronounced.

Of course this will ultimately be most beneficial for people that are currently generating good current income and have funds for a down payment.  If that’s you, then you may want to take advantage of the unique opportunity that the market is affording you.

Search the San Diego MLS for homes currently on the market here.