San Diego Housing Bubble News and Analysis

AN, if I were you, I'd put your home back on the market to try to make a quick buck. I know your wife would probably be pissed, but speaking from experience if I didn't listen to my wife and threw my home back on the market 2-3 months after we closed, I would have probably pocketed $150k for doing nothing.

We were actually talking about that when I showed her this house. She's perfectly fine going back to renting if we can pocket $100k :-).

wow, that's insane. $327 per sq foot in Mira Mesa!

Don't sleep on it too long. Just put it on the market...If it doesn't sell, just stay.. Price it nicely, and get multiple offers. Work with SDR on it (sorry SDR, just creating more busy work for you I guess)....

Maybe the $500k transaction is a trustee sale.

Wow. I mean there are a couple of nice things about it - big lot on a canyon... but still, that is bubble priced.

Single level tucked away in one of the quietest parts of MM on a canyon view lot. Not surprising to see it sell at a big premium. Hold your horses AN, that one really is different.

I don't buy that it's different. Yes, the location is nice, but to many, it's still MM and it's only 1500 sq-ft. That's why it sold in 2003 for 425k. Based on this 500k price, it's probably around 2004 price.

Do you think this one is also different? 1320 sq-ft, 1973 house on a busy street, just sold for $395k.

It absolutely is different but I'm not saying its a reasonable price. I'm just saying that its different from YOUR house in that someone will dramatically overpay for something like that which doesnt mean they will for yours also.

BTW, 1 story homes live bigger than 2 story homes because they have less wasted space for hallways and stairs. A good rule of thumb is to add 15 to 20% to the sq ft of the 1 story when comparing to a 2 story. For example, if I couldnt find comps for a 1500 1 story I would use 1800 to 1900 sq ft comps on a 2 story.

That's my whole point, I must have missed the memo. The other one I've posted seems to sold at a crazy price as well. I thought MM is heading for 2001 price, not 2004 price. These premium you're talking about has always been there and will always be there. I totally agree with them as well. I do prefer one story over 2 stories as well. I've also noticed people will overpay for move in ready vs fixer too. This house is clean but kitchen is dated. I always thought appraisal will be the final hurdle and I'm surprised that it actually appraised for $500k.

Nice canyon view...but yeah a lil on the high side for MM...one positive thing is that it has ZERO mela roos.

Lot size is quite big (almost half acre). I believe land value may be important factor for this house. You cannot calculate per square feet for this house because of the bigger lot.

While driving around today, I was thinking about how much I'd LOVE to be a seller right now.

Be not mistaken, this is a seller's market. I'd be selling, selling, selling right now if only I had a house to sell. :)

Most of that land is in the canyon and is not useable.

Dont they grow things in canyons down in MM. They do in Encinitas;)

Seems like I did miss the memo. This 2/2 condo in Mira Mesa just closed for $310k. $30k/11% higher than last July.

So much for not caring about house prices and leaving the house to your kids.

The more people claim that they don't care, the more they care.

Huh? Of course I care. That's why I'm still sticking around here. I want it to drop some more so I can pick up some cheap rental or an even better primary resident. But it's not happening. I don't care about my primary resident, since I will be leaving it for my kids. I think you need to wrap your head around that idea a little bit longer.

Must be the nice view with the power lines.....

Yes but with a little work, it's more storage space as well Plus there is also a place to hang more pictures.

AN :
Yea I think several pigg’s sent out that memo a few months ago, If you bought in Jan/Feb, you are probably up nicely but I am not sure if it is a lasting thing or not.

For $100k, you're not leaving the house to the kids.

Typical NIMBY self-serving type mentality. Nothing do to with economics and fundamentals.

NIMBY? Really? Your comment doesn't make any sense. Why am I self-serving and what is the economics & fundamentals have anything to do with anything?

Put the house on the market today, and you'll pay taxes through the nose. If you've been in the house less than a year, anything you get to keep after commissions is taxable as ordinary income. 9.3% state and 25->28->33% federal. If you bought for 400k earlier in the year and you sell for 500k now, once everyone had their cut, you'll pocket something like 40-45k.

Gets better after a year (15% federal + 9.3% state), both taxes go to zero after two years.

Eugene, I was just playing around when I said I would sell my house right now if I can pocket $100k in profit. Since, I don't expect the market to be that crazy, or at least I hope it's not that crazy. $100k profit means my house would have to go up $200k, and I don't see that being the reality.

AN, it sounds like for a 100k profit, you'd be willing to flip house that you bought recently.

You previously state that you'd were planning to will to your kids so price movements did not matter.

Frankly, you sound like the typical homeowner who, win or lose, can always vociferously justify the purchasing decision.

That's what most homeowners were planning to do during the boom. Climb the property ladder 'til they reach nirvana.

I look at it this way. It would be the same as if I go out and buy a nice car knowing that it will most likely depreciate, such as an R8.
However, if someone comes along and decides they want to pay more than I paid for it, sure I wouldn't mind pocketing the difference. Otherwise, I would just enjoy what I just bought. Makes perfect sense to me. (In practice, I could only dream of buying an R8 heh heh)

briansd1, yes, I would flip the house if the market got crazy enough that I can pocket $100k in profit. I don't expect this to happen, but if it does, I won't be greedy and hang on. However, in normal market and the kind of market I'm expecting to see, I'll be leaving it to my kids. Do you see it now? BTW, I'm not shouting noisily. I'm not trying to justify anything. Why would I need to justify anything to people I don't know?

A NIMBY is someone who does not want development in their neighborhood (as in "Not In My BackYard).

What does NIMBYism have to do with AN's comments ?

Pending other evidence to the contrary, the above quip by briansd1 appears to be intended to incite versus enlighten or prove a point.

Maybe it’s because there is so little inventory on the market right now,

Sometimes I think the banks are just waiting for a few more organic listings to come on the MLS so they are gauge what the real market is.

Hint, it’s not the price these foreclosures are going for.