I am amazed at how resilient North County Coastal condos and houses were during the last recession and how greatly they have appreciated compared to other areas. Are there any regional or national financial or political trends that could stall appreciation of west of I-5 properties? CalExit, tighter restrictions on seawalls, high interest rates, an HOA in poor financial condition with major forthcoming special assessment, more frequent high temperature and humid summers? Do you all think North County Coastal is at peak pricing at present?
From what we’re seeing, there currently seems to be no shortage of foreign funds flowing in for coastal properties, which is bumping prices far beyond previous highs. Lots of things could derail this train, but what and when may be difficult to predict.
To you last question. I’d think not yet. Inventory is not only low, but it seems to be decreasing.
I could see situations like you mention stalling the appreciation rate a bit, but it’s going to take a lot more than that to actually force prices down.
I mean…they cannot just go up forever at the rate they are, but I’d love some data to help predict when that might occur. It would probably have to be something tied to demand like more difficult financing (not necessarily easy now) or people just choosing to leave, but I do not see that happening soon either.
How about the implementation of a state estate tax? I think if voters pass a state estate tax, then the demand for high priced real estate by California residents would plummet.
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