Southern California, thinking of buying a place to live

[James Taylor]

I am in the San Diego real estate market, there have been big gains here in the last few years.

The problem is it's really hard, based on comps from previous sales, to judge the value of homes.

I'm looking at a 2 bedroom 1.5 bath condo with 2 car garage that is pretty close to the beach but not in a beach community. I know that is valued but it still isn't in a beach community where the real money and staying power is.

This does have a 2 car garage though that makes it more unique, a lot of places don't have this due to space constraints.

My question is, how do you know what is a good deal and not? The last place that sold was 3/2/2006 and it sold for 380000 for the same exact unit, except it had some upgraded floors and light fixtures. There are 2 currently for sale in the same complex, one has great location, great exposure to the sun and is all around better. It is for sale for 359 and has just been put on the market. The other is a 10 something exchange, they originally had it for sale for 369,000, but after no offers they cut the price 10k and now have it listed for 359k. It was a rental and it shows, it needs everything. I think the other house based it's price off of this place even though they are just trying to dump the place. It was owner occupied and we could move into it right now it's so clean. The other place would need some paint and a very thorough cleaning.

I'm thinking of offering at 337k. Does this seem like a deal? Or do you think the San Diego market is going to tank even more? The one that is in exchange is really desperate, but I honestly think with it's location, exposure to the sun, and placement in the facility, the other one will hold it's value better.

Is it best just to hold on for a while and see if the market is going to sink more? Or is it just going to level off and not really sink? I don't know where to get the statistics for prices and if they are decreasing in areas or not..