[quote=deadzone]
Perhaps, but you mentioned yourself sometime abo that Carmel Valley was being bought up by Chinese money. And regarding people moving here from “more expensive places in US” in reality there are very few places in the US with higher housing costs than San Diego, Bay Area being the most obvious.[/quote]
Well it might have been some of that 2-3 years …..but….they arent the main reason that is driving carmel valley homes now past $650+/sqft..Or driving mira mesa sfh to $1millon right now. Or blowing the price roof off of carlsbad or encinitas.
Its all being driven by what i call the “shelter in bigger suburb home” covid-19 crowd, which has crippled the inventory and driven the home prices more so than those foreign buyers might have years ago.
In hindsight, when foreign buyers were buying, inventory was not nearly as bad, prices were high. but nowhere near where they are now. One foreign buyer bought a home near me for about $1.25 million about 3 years ago….There wasnt that much competition for it…Today, a comparable home will close around $1.6-1.7m and probably had 30-40+ offers. 3 years ago, the home we bought had mutiple offers. But not nearly as crazy as the 20-30+ you see and hear about now. Back then, seller took our cash offer versus other people who were probably willing to pay more with a loan contingency. The seller wanted to close fast.
Fast forward to recent times. 2 months ago, I tried buying 2 townhomes in mira mesa. Forget it was a 2/2 around $600k. I threw in two cash offers, slightly above asking for both and and offered ro close within 15 days.
The first townhome had 30 offers. I didnt even make the short list after my counter stayed. They didnt care i had cash and could close early. The seller was willing to take a chance and find a buyer that was willing to take out a loan and spend more, even if there was a higher risk the buyer may fail to perform. I guess they figure if the first buyer backs out, theres 29 other buyers itching to buy.
That place closed at $650k….in mira mesa…for a 2/2 townhome..owner occupied….
The second townhome, similar situation, but i was among the first 6 that the seller wanted to work with. I stuck to my terms because i had originally offered more above asking than the first, again cash offer + quick closing..The seller ended up cancelling selling… He decided he was going to rent out his place ..I guess he was thinking he can get more money for it sane time next year.
The more recent price movement has very little to do with foreign buyers. Foreign buyers might have taken some inventory off the table a few years ago, but not nearly enough that if you were ready to buy, you couldnt have bought something. versus right now, its prety crazy…
One of my friends just moved back here. He brought his senior software engineer $350k+/yr.comp package with him. So did his wife…and their friends are contemplating making the same move because for them, spending 1.6-1.7m is chump change…what they would be spending for a hole in wall place in bay area in a subpar school district. If they are doing it, and their friends are contemplating it..theres probably a lot more thinking about it and/or doing it.
i think times have changed…as another pointmm.for the last few yeaes, ive gotten so many calls from FANG companies asking me if i was interested in working for them. The conversatiom ended when I said relocation isnt possible. These days, same recruiters from same companies reach out to me with “are you interested to learn more about our remote opportunies”
