It seems one argument against high prices reflecting a bubble is if buyers are owners as opposed to speculators, investors, etc. So just the other day I was talking to a colleague who lives in Del Mar and he told me that in the past few weeks two buyers came in and paid stupid money priced in cash for nearby houses. One was from Taiwan and one was from Brazil and neither are going to be owner occupiers.

This surprised me because we know this is happening with real estate in NY, SF, Orange County, parts of LA, but I didn’t realize it was happening here in the village of Del Mar.

So, that helps to explain the crazy increases in list price and adds to fears that normal people are being priced out. I can’t compete with foreign cash.