With the constant real estate cycles, many homebuyers want to time the market. They are subscribing to the old saying, “Buy low, and sell high.”
The problem is that you don’t always know where you are in the market. The real estate market can be very similar to the stock market. If you always try to time it by jumping in and out, it won’t work to your advantage in the long run. There are just too many variables.
Rather than blindly following old adages, here are several tactical indications for when you should buy or upgrade—specifically for Coronado’s unique real estate market.
Lifestyle & Readiness First
Your housing choices should reflect your lifestyle and financial readiness. Not where the market is today.
Most homeowners live in their primary residence for 10-20 years. Even buyers who purchase at the top of the market will see positive values over that time frame.
If you are ready to own in Coronado, then seize the moment! Snag the property that will accommodate your lifestyle and doesn’t suffocate your finances. Often times getting your foot in the door is the ultimate goal. Many homeowners view their first Coronado home purchase as a stepping-stone, with the plan to upgrade later.
If you’re not there yet, don’t worry. There are great opportunities to rent on the island. You will enjoy all the charm and magic of paradise just the same. And when you’re ready, we can help find the property that fits your lifestyle.
The Market Will Take Care of Itself
There will always be ups and downs in the market. Despite what may feel like a rapid roller coaster, historically the macro level look at the market shows a distinct upward trend.
So here are a few historic trends to consider before investing in a home:
- The market cycles every 3-7 years;
- The cycle is a part of a correction period realigning a market;
- A 10-20 year look at the market shows steady appreciation.
Buy and Sell in the Same Market
Let’s say you wait out the market and sell at the height. That’s awesome! Congratulations, you achieved your goal.
But, now what? Do you wait and hope the market slumps again? Unfortunately there’s no crystal ball predicting the market. While there is an upside potential, it would be devastating to sell in one market and try to buy in a higher market.
Once you own a home, it’s much smarter to buy and sell in the same market.
Coronado is a Limited Market
If your ultimate goal is to live in Coronado, there is one glaring disadvantage. Land is limited. This isn’t to spur you into buying when you’re not ready. It’s the reality of Coronado.
Here’s a breakdown of Coronado from a housing perspective:
• 3,000 single family homes
• 1,200 condos
• 800 single family homes
• 400 condos
• 1460 residences
While lifestyle and financials should always be the primary motivator when purchasing, Coronado hopefuls should be aware of the current landscape. Demand is constantly increasing and, there is a very limited supply.
Our general rule of thumb is that if you are in a position to buy, do it.
If you are ready to explore the possibility of owning or upgrading in Coronado, contact one of our agents today. As the largest boutique real estate offices on the island, we can help you find the housing setting that is right for you.