A rough third of San Diego households are still renting San Diego real estate. Among the many buzzed about reasons why so many households still choose to rent, the San Diego real estate bubble is currently the most popular. Because the children of the baby boomer generation are choosing not to buy a home because of the hype of the San Diego real estate bubble, the San Diego real estate could potentially take a drastic hit.   

Despite the hype of the price bubble-there is no San Diego real estate bubble. The rise of interest rates is causing much concern, however even if the interest rates moved higher, they simply will not cause a countywide slide in San Diego real estate prices. To understand the San Diego real estate market, it's helpful to understand its correlation to the San Diego employment market. For example, if a new home payment rises due to an increase in interest rates, the slight change typically will not stop the buyer from purchasing the home. However, if a buyer senses they might lose their job, their employment anxiety might spark the economic choice not to purchase the home. In continuance of this correlation-because the employment market is doing well with low levels of unemployment, the San Diego real estate market is also doing well.    

Rumors of the San Diego real estate bubble have been around for years. Needless to say, the San Diegans that chose to rent and consequently missed the opportunity to buy when San Diego real estate prices were low are now disappointed. In respect to recent San Diego real estate trends, every day you don't buy a piece of San Diego real estate, you are costing yourself money down the road.  

A specific San Diego real estate example may clarify talk of the San Diego real estate bubble. Despite the hype, it's still better to buy than to rent. For example, if you rent a San Diego real estate condo for $1,500 a month for 5 years, with an increase rate of 5% a year-you pay a rough $100,000 over the 5 year lease term. This San Diego real estate example further proves the common buzz about renting: after you pay the $100,000, you have no homeownership to show for it.

Buying San Diego real estate is not as hard as many renters believe. There are many mortgage programs available to enable potential buyers afford a mortgage with a low down payment and modest interest rates. What renters don't know-is that for very close to the same price you pay for San Diego real estate rent, you could own your own piece of San Diego real estate.

The assumed San Diego real estate bubble frightens renters away from buying into the San Diego real estate market-but the rumors simply are not true. Unless more baby boomer children start educating themselves about the truth of the San Diego real estate market, the San Diego real estate bubble façade could drastically affect the San Diego real estate scene.