I just read the other topic but curious what people think of the San Diego market? Particularly in Univ Heights, South Park areas? Do they have their own market within a market?
I am considering buying in one of these areas. Is the run up over? Will prices hover around the same for some time? Will prices go down?
Can prices even go up in these areas with what people earn. Starter homes for families 2/1 1000 square feet at 600k. Move up homes with more square footage 800k plus? Do most people make this kind of money to support these prices? I know these are more sought after areas now but still hard to figure (for me at least)
I tend to be bearish and spot bubbles long before they pop. That being said, most asset classes seem awfully frothy right now. Some asset types, like commodities, are correcting to some degree, thankfully, but it remains to be seen how connected everything is. Are the rich leveraging up, using one type of asset class in order to buy another?
You don’t need funky loans for the lower classes in order to have a bubble. You just need speculation…add leverage and a lack of other good investment options, and you can easily get a bubble.
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