Solana Beach, CA · Member since 2016 · 29 posts · 3 votes
Hi everyone! I’m hoping for some sage advice regarding a home we have an offer accepted (it seems my agent had a good relationship with the selling agent). It’s a 3 bed 2 bath -1600sqft home in the La Costa neighborhood of Carlsbad CA (san diego) and we really like the neighborhood/home. Our offer is at 1.4M and although it is a stretch for us we can afford it responsibly. However we are concerned that we are overpaying massively for the home and maybe making a financial blunder. We could wait and rent longer but we will be burning money and not saving much. With headwinds such as rising interest rates potentially more inventory coming on the market soon is this an insane decision? I keep seeing homes that were larger in the neighborhood that sold for less just 2-3 months ago when interest rates are lower and it’s haunting my dreams. Our plan is to be there for approx 5-7 years and maybe step down to a less expensive market closer to our parents.
If you like the home, can afford it, and plan to be there for a while (which it sounds like all those apply), then I wouldn't second guess your decision. No one has a crystal ball. Higher interest rates may slow the rapid appreciation some, but even if they notch up a point or two, we are still in historic low territory for rates. I don't see any indicators that we are going see significant increases in inventory in the next year or two. (I would love to be wrong so feel free to correct me to anyone that is reading this!) My bet is that it is going to be a seller's market in San Diego for the foreseeable future. Feel lucky that you have a good agent and your offer was accepted. :)
As the Real Estate Guys always say " live where you want to live and invest where the numbers make sense".
@Emy Bernardo Thanks for the insight Emy. We are trying to wrap our heads around chalking up the 1.4M for a house that was worth 1M 2 years ago and 1.2M 1 month ago. That type of appreciation seems so unrealistic that it makes my stomach turn. We do happen to have the best agent I could hope for and he is very optimistic about the prospects of buying the home but these numbers are overwhelming for a first time home buyer with a family. It sounds like you think it’s not irresponsible decision which is good to hear.