sdr: I’m sure you have heard of the idea that supply and demand determine prices. San Diego house prices are high in comparison to other areas because of limited supply: terrain, high labor prices, an intrusive and expensive government, etc. People are fleeing to AZ, NV, Utah from CA (including San Diego) at increasing rates, and especially the high income people and firms.
In the rarefied atmosphere of La Jolla and coastal San Diego in which sdr operates, the old rich demographic will keep prices high. Where people are moving to tend to have abundant land for new developments (which are exploding here in St. George)–same for other nearby areas…thus the vastly lower prices. High prices may be a point of pride for sdr, but the average working family who must pay $3/4 million for a 45 year old Mira Mesa tract house with a one car garage….??? That amount will get you a house like mine: 3200 S.F., forever views, property taxes of under 1% of value, great schools, little crime or drugged out homeless, clean and lean government, utility rates 1/4 of San Diego’s, etc., etc.
Yes, interest rate hikes have softened our new home prices–mine fell from over $800,ooo to about $775,000 as a result (paid $550,000 3+ years ago). New developments are exploding to meet the population influx, so prices retreating slightly due to interest rates and the increase of supply. My three rental condos are still gaining in value, any vacancy is quickly filled, and I raise rents annually.
