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<<Do you have any take on whether real estate prices will be retracing back to lower levels? >>
It depends on where you look. In San Diego, the values had already declined, and are just now (last 6 months) entering a recovery phase. There are still some good deals left in parts of the North County, and some okay deals further south (less potential due to the areas). Los Angeles already had a fairly serious correction about 10 years ago, but is probably due for another within 5 years.
The problem with waiting, is that unless the valuations are already at the limit of what is affordable for the region, prices are likely to increase another 10-20% before the drop. After the drop, that would put you about where the prices are today, but without having built up any equity. With interest rates so low and rents so high, I would be tempted to look at houses in San Marcos or thereabouts(in the San Diego area) for a reasonable deal. By the time you factor in insurance, tax advantages, repairs, etc., the two scenarios were about even when I left there a couple of years ago. They probably still are. |
