As flu said, it’s great for current homeowners, but not great for those trying to get in or move up. It’s especially sad that most of the kids who have been raised in the area can never afford to live there when they grow up–should they want to. IMO, that will be true in most of San Diego in the future.
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Why? What’s so different now than say, 2 years ago?[/quote]
A lot… 2 years ago, everyone was still on the fence on whether to buy, even though prices were still relatively reasonable. That includes a lot of people who had the means to buy as a trade-up.
Those who have bought, did so under the most favorable interest rate terms, under the most stringent lending requirements we’ve seen. Jumbo’s were virtually non-existent (or if they existed, had a huge rate difference from conforming or conforming+).Translation. Strong buyers with favoring monthly payments due to low interest.
And perhaps people on the fence who were smart (unlike me), moved up at this time, new home prices were still discounted, interest rate was low, and on a previous home, refinance rates were low, so you could actually slightly cash flow your previous home in CarmelV and just sit it out and wait for appreciation to kick in, since this area, short of a Sorrento Valley implosion, a school district implosion, or falling into the ocean, it isn’t going anywhere.
Rents for a 5bdroom SFH these days is around $3900/month give or take $200-300. If you look at some of the 3 bdroom apartments are going for around $2400-2600 on up. And yet, there’s no end in sight, schools are getting more crowded, more people seem to be moving in, and buyers are still buying, and builders are still building new apartments to absorb the demand.
I’m not sure if there is much more to move up in price, but it’s really irrelevant. Prices are near or above peak, there wasn’t this flood of 40-50% off discounts as people had tried to predict.
