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4 Comments

  1. urbanrealtor
    May 16, 2013 @ 9:57 PM

    I strongly disagree about the
    I strongly disagree about the CS overstating the price increase.
    Perhaps I have misunderstood your assertions but it appears that you think that the detached “quality increase” closings skew the ppsf north because people are buying nicer stuff.

    Historically and broadly, these short term gain trends are far more pronounced in the cheaper and attached set.

    Recently and locally, this trend is even more pronounced in high-density areas. Thats not a huge surprise because people like to buy condos and small houses in cities. They don’t like having a 1200sf house in Murrieta (though that would be popular in Hillcrest). The peak to trough for metro sd (old neighborhoods minus downtown) was like 50% (of peak price). The trough to peak will probably be more like 70% (of original peak). Its absolutely nuts. The mean rate of change in lower-end stuff is increasing like the CO2 count (also a liberal conspiracy).

    That volatility is consistent with the last 10 years as an observable macro trend in these sub-markets.

    Short version:
    The very best investment for your dollar was buying as many 1-bedroom North Park condos as you could afford in 2008. And selling it. Right now. Before the government starts backing away from the GSE’s again.

    My 2 bits…

    • spdrun
      May 16, 2013 @ 10:42 PM

      2008? “Very best” would have
      2008? “Very best” would have been buying as many shares of F at $0.99 as you could 🙂

      Unlike North Park condos, it has increased 14x or so in value since ’08.

    • Rich Toscano
      May 17, 2013 @ 8:17 AM

      urbanrealtor wrote:I strongly
      [quote=urbanrealtor]I strongly disagree about the CS overstating the price increase.
      Perhaps I have misunderstood your assertions but it appears that you think that the detached “quality increase” closings skew the ppsf north because people are buying nicer stuff.

      Historically and broadly, these short term gain trends are far more pronounced in the cheaper and attached set.
      [/quote]

      I don’t think the fact that the price moves are stronger in the cheaper stuff is incompatible with the idea that people are buying nicer stuff across all sectors. Those two things could be happening at the same time.

      But, it’s just a guess in any case… it could certainly turn out that the price/sqft numbers are fully reflecting real price changes after all (ie that there is no quality shift).

  2. SD Squatter
    May 22, 2013 @ 12:23 PM

    Looking at a bigger picture
    Looking at a bigger picture here (includes pre-bubble era, whole country), it seems like we are basically back to the normal pre-bubble levels. San Diego market seems to more or less follow all trends:

    Did people forgot what “the normal” used to be?

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