CAR, I understand what you’re trying to say here re: supply and demand. But RE values in coastal CA counties are determined by sold-comps in their respective “micro-markets.”
For instance, if small dry-rotted “Drogan-style” SFR’s in Loma Portal (92110) have recently sold for =< $500K, you may NOT find any comparably-sized SFR sold comps =<$500K in Plumosa Park (92106), even though the two areas are 1/2 to 1 mile apart.
Even if these two areas were in the same zip code, living in Plumosa Park has several advantages over Loma Portal.
-custom homes (not on tract)
-larger lots
-some wider sidewalks
-grassy traffic circle
-“Historic” low-glow street lamps
-some “Historic” homes
-occasional use of curved glass lends “character” to area
-raised foundations (easier to fix plumbing/heating)
-longtime dog-walking group
-caroling groups at X-mas
Potential buyers for this area may not need a mortgage (or lg mtg) in order to purchase. They may be downsizing retirees or an individual with a construction background who wishes to rehab a personal residence for his/her family or to retire in.
The attractive locations and ambiance of these areas attracts buyers who are not interest-rate and job-sensitive.
