Should you sell or keep your San Diego home in 2022? San Diego Realtor Kyle Whissel gives you several points to consider before you sell your home in 2022.
Is Selling Your Home in 2022 a Good Idea?
If you're thinking about selling your San Diego home in 2022, I'm going to tell you what you need to know to make the right decision for you, and for your family. I'm Kyle Whissel with Whissel Realty Group in San Diego. And today I want to talk a little bit about making a decision whether or not it makes sense for you to sell or not sell your home in San Diego. If you've been following the news, and following the trends, you know that your home is worth a whole lot more today than it was when you bought it. even if you bought it yesterday, values are going up so fast, that they are literally changing by the day. If you bought your home 10 years ago, your home is probably worth more than double what you paid for it.
So you're deciding what do I do? Do I sell this or do I stay? Now, I'm going to give you a few different options 'cuz you're going to fall into one of three buckets. Bucket number one is you're thinking, "Man this the value is so high right now. Let me sell. Let me cash out. I'll just rent something. Well, you could do that. You're going to get a great price for your home, and that is fantastic. The problem is you're going to go rent. So while you've been tracking the value of your home, what you probably haven't been tracking as much is what's happening with rents in San Diego. Well, here's what I'm going to tell you. Rents have gone up nationwide by about 17% in the last 12 months. Yes, 17%. So everything has gone up, right?
We all know inflation has gone up. Rent is part of what's gone up in inflation along with home prices. So that apartment you used to rent or that house you used to rent before you bought, that thing that is a whole lot more expensive today than it was years ago when you bought your home. So you're going to have to be prepared to pay a pretty penny to rent something here in San Diego. We're seeing one-bedroom apartments renting for well over $2,000 a month today. If you're looking for a house, most of San Diego, you're going to be looking for 4,000 plus a month for rent. You want a bigger house, you could be talking $7,500 $10,000 a month to rent a house in San Diego. So be prepared for that.
Also, be prepared for the fact that rents are expected to go up again in 2022. So what your rent is when you sign your lease today, it's probably going to be higher when you got to renew your lease in 2023. So be prepared for that. Now, the other thing to be prepared for is while you watch the rent go up a year from now when you look back at what happened to the value of the home you sold a year ago, you're going to kick yourself because values are going to go up substantially this year. Most of the predictions nationwide, they're talking about five to 7% appreciation. Having been a realtor here in San Diego, and having sold over 3,000 homes, I got a lot of experience. My data tells me that I got a degree from UCSD in economics, and I study charts and graphs, and all of this fun stuff.
I believe in San Diego, you're going to see double that. I think you're going to see somewhere around 15% appreciation. Now, I'm going to go with a plus or minus 3% on that. So 12 to 18%. But if you're going to pin me down to a number I think it's 15% this year. So do you want to sell, and go rent something that's extremely expensive, and only going to get more expensive? Or do you want to hold onto that house, and take advantage of 15% appreciation on top of all the appreciation you already got? I think that's a pretty easy decision to make there. Now, let's talk about some of the alternative scenarios. Maybe you want to sell so you can get out of state. Maybe you don't like San Diego. Maybe the political climate's not your jam. Maybe it's just too damn expensive here. Maybe you got a job offer somewhere else. Whatever the case may be.
This scenario is going to probably make sense for you. Cash in here, make a ton of money. You didn't know this when you sell, if you are single, you can keep up to $250,000 tax-free. If you are married, you can keep up to $500,000 tax-free. And if you've got even more gain than that, we have some really cool solutions here at Whissel Realty Group. We can help you explore to mitigate the taxes above that half a million dollars but think about half a million dollars tax-free. You don't get the opportunity to stick it to Uncle Sam like that. This is one of those. So if you're thinking about moving out of state, sell it here, take all that money. Most of it is tax-free, and potentially all of it tax-free. And now you can go to relocate to whatever other state is. Maybe we got a lot of people going to Arizona to Idaho, to Texas, to Tennessee, to Florida. Maybe you want to get away from the State Income Tax.
Maybe you want some seasons. Whatever the case may be, this scenario is going to make sense because you're going to get a ton of money out of here, and we have a lot of clients who are selling and taking all the equity they had here and buying a home in cash in some of these other places. Or they're getting twice as much home for the same price. So that could make a lot of sense for you. And then the third option. The one that really makes sense right now is to sell and move up. When I say that sell, I personally did this myself last year, I sold my home. It was a nice home, but we wanted a little bit more space. We wanted to have an ADU for grandma to live in. She helps take care of our daughter.
So we wanted a little bit of extra space. So we moved up to that bigger home. And so you're thinking, "Well why didn't you hold the old one?" Well, we were already at our half a million dollars tax-free. It made sense let's sell it. Plus we needed the money from the sale to buy the new home. So we sold the old home, bought the new one. And what we found is that the competition for our old home that was a lower priced home was crazy. We're seeing that across the board right now, the lower the price, the more competition there is. The higher the price, the less competition there is.
So it's a perfect storm for you to sell where there's a high level of competition, but where there's a little bit lower level of competition. And now your prices are going to appreciate, let's call it 15-ish percent this year. Do you want to be holding the lower-priced asset or the higher-priced asset if you know values are going to go up? Logically, you want the higher-priced asset. So we effectively doubled the asset value of our primary residents. Well, since we bought our home, it's up over 20% in value. Well, it's actually up 40% relative to what we used to own 'cuz our new home is worth twice as much money. So we've gained a massive amount of equity, twice as much equity as if we would've held that old home.
So if you're thinking about moving up, makes a ton of sense. So if you're watching this video, you're thinking about selling. You want to get an expert opinion on what your home could sell for in today's market, and also explore where you could go, that's what our team is here to do, and guide you through that process. Give us a call. Shoot us a text at the number down below. We love the opportunity to help guide you through the process. I'm Kyle Whissel with Whissel Realty Group. Thanks for tuning in.
