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  • April 2, 2007 at 2:26 PM #8734
    PerryChase
    Participant

    Most of us would blame the real estate bubble for squeezing the middle class and making it hard for families to live in San Diego.

    However I think that run up in real estate prices has brought some benefits:

    1) Acceleration of the redevelopment of Downtown. Downtown is now a viable place to live.

    2) Gentrification of neighborhoods such as Hillcrest and Normal Heights, and revitalization of low income neighborhoods such as City Heights.

    3) Increased tax revenues made highway projects such as the 5/805 merge possible. Homeowners tend to support highway projects as long as home appreciation goes on strong.

    4) Building of new schools.

    Can you guys think of any other benefits of the bubble?

    April 2, 2007 at 2:56 PM #48957
    hipmatt
    Participant

    Heres a benefit to correction…(its not a crisis, its a correction)

    5) Hopefully it will teach us a lesson on lending standards and why abandoning them is a huge mistake. And why re-instating them is even more important.(probably should be even tighter standards)

    6) Speculators will think twice in the future before ruining the markets again.

    April 2, 2007 at 3:01 PM #48959
    sdrealtor
    Participant

    Great prices on almost new late model luxury cars in 2008! I may actually treat myself for a change.

    April 2, 2007 at 4:34 PM #48967
    dontfollowtheherd
    Participant

    I concur. Think I’ll pick up a car and another house by then.

    April 2, 2007 at 4:42 PM #48969
    recordsclerk
    Participant

    You know the speculators won’t sell you thier cars cheap. They are going to expect at least 20% appreciation annually. You’re going to have to buy them from the bank if you want a good deal.

    April 2, 2007 at 4:58 PM #48971
    kewp
    Participant

    If history is any example, bubble-assets after a crash end up cheaper than before the run-up. So I might be able to actually buy a starter home!

    I’m also looking into renting a nice condo for dirt cheap a year from now, when the conversions revert back to rentals en masse’.

    April 2, 2007 at 5:46 PM #48975
    PerryChase
    Participant

    sdrealtor, I’d think that you have a luxury car already. Isn’t an upscale vehicle a requirement in real estate sales?

    April 2, 2007 at 9:40 PM #49000
    Anonymous
    Guest

    Perry, enjoy the four benefits now, ’cause they will revert to their prior state in the upcoming recession/depression.

    If 30% of homes for sale are vacant now; if construction has stopped midstream in certain developments; things will only go downhill from here.

    April 2, 2007 at 10:00 PM #49002
    sdrealtor
    Participant

    Sorry PC,
    I’m far too pragmatic for that. In my eyes one of the greatest joys in life is driving a car you own free and clear. For me to actually drive one, it would have to be really a good deal or I would have to have run out of things that I value considerably more to spend my money on.
    SDR

    April 2, 2007 at 10:22 PM #49005
    salo_t
    Participant

    This bubble brought us the failed Fashion Walk in Mission Valley. What a great concept right? er… right?

    This is a topic I tried to start maybe six months ago but it didn’t really take off at that time. As damaging as I think this run-up has been I can also see where it has been really healthy for certain neighborhoods as far as fixing up crapy areas but then again they may go to crap again when its all over. We’ll just have to see.

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