San Diego Housing Bubble News and Analysis

It's the weather dude.

The banks can still collect mortgage insurance.

Didn't prices fall about 20% in the last year?

Nothing's keeping prices expensive other than the ridiculous levels reached at the peak and the time it takes for them to reach bottom.

Still some sort of stable job market is existing in San Diego and that's the one keeping bit high the market. I don't think things would flip soon or latter when the job market plunges.

5yearswaiter

Mix in the absence of a significant catalyst like higher interest rates and/or a significant change in employment prices are going to move at a slow rate. Actually if you measure the drops in certain areas in just 2 years the movement has been pretty substantial in real estate terms.

There is reality and then there is the blogosphere. Don't get to caught up in what happens on your computer screen. The real world is a bit more accurate but it will catch up at a more realistic pace.

It just takes time Mix.

SD Realtor

"It's the weather dude"

You talkin' to me ?

It's all the extremely high paying mid six figure and beyond incomes that the service industry workers pull down.
That "median income" stuff is all crap.

Are there really that many people in San Diego making around 500k? Or do you mean mid 100k?

Sorry An, I wrote that poorly, I meant mid 100k.

Still, with today's financing and without a sizeable downpayment, 150k a year is a stretch to put you into a 500k home. Unless of course you have absolutely no other debt along with a few other factors.

Good points,

I make over 100k a year and cannot afford a home here yet.

Then again there are married couples making over 200k so they are keeping prices high. That and easy financing still is somewhat available. I hear all the zero down payment plans still exist in the newspaper real estate section and flyers. Guess it takes time.

I made a wager that in 3-5 years if I cannot afford a home in San Diego that I would move to a cheaper place like Texas where a large home costs 100-300k versus 700-1million in San Diego.

Sorry An, I wrote that poorly, I meant mid 100k.

I call shenanigans.

The only difference between now and 1998 employment-wise in SD has been the huge growth in the RE and financial services sector. Due to loose lending standards and rampant speculation, I might add.

This is changing, slowly. Check Rich's job charts.