Its primarily shelter

My sister called me one day and told me her friend's buddy was looking for a place in San Diego. We talked and set up a time to view properties. What we discussed was price, space, and proximity to school or school transportation to UC San Diego. Having attended there, I had a good idea of the areas that would be perfect to look at. After viewing more than a handful, we deduced the possibilities to two. He and I both spoke with his dad, who would be the one purchasing the condo for his two sons. W e discussed pros and cons, the prices, and then we finally thought about the financial benefit. When that seemed equally weighted, the father asked me which one I would rather live in, “as a student.” I said without hesitating which one I would prefer living in as a student.
The ultimate question was not which will maximize his return after three years and the boys are graduated. San Diego on average has experienced a 5% decrease in home prices over the last 1 ½ years and are still fluctuating in certain areas. That wasn't the concern though. The market doesn't determine most sellers reason for selling, their needs do. Most people live in their home for around six years and in that time realize an appreciation exceeding 40%, but they live there because they need a roof over their heads. He had a need to see his money go towards something other than a landlord's pocket for two of his boys over the years they would be attending the university. Now having an idea of the areas, I also knew that the prices if he bought where he did, that the resale on this particular complex was higher than what he bought it for, and now he has five figures of equity all before the school year starts. This is a great example of a buyer needing a place and not hesitating to go form with a purchase, despite the negativity of the media and others. Not only was there no hesitation, but there was a substantial payoff for doing so. This is the ideal consumer the market is looking for to correct the surplus inventory and buyer fears. Thank you for setting the example!