[quote=deadzone][quote=bearishgurl]deadzone, you must be aware that most longtime property owners whose properties are along the CA coast don’t have to sell and have never been in a position to be forced to sell!
They can hang indefinitely into their nineties (with a property mgr who is paid or unpaid). If their heirs don’t want to deal with tenants and don’t want to occupy any of the properties when they pass, THEY are free to put them on the market.
In the well-established areas, there are still a lot of “vacant” homes with furniture or the owner(s) storage inside, either which haven’t been occupied in more than a decade or are used by relatives when they come to SD for a visit. The owners are charged the baseline for utilities and their taxes are next to nothing so THEY DON’T CARE if they EVER have any rental income from it because they have very, very little carrying costs.
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That’s your argument for why SD real estate cannot go down? You could say the same thing about any city, has nothing to do with prices. There are greater market forces that are driving real estate nationally, San Diego is being buoyed by these same forces.[/quote]No, deadzone. Actually, SD (and the rest of coastal CA) is NOT “buoyed by the same forces” as the rest of the nation. Not by a long shot.
You’re not taking into account the effects of Prop 13 and its progeny (Props 58 and 193). These sections (still on CA’s books at this late date) are a HUGE disincentive to list property for sale . . . EVER . . . whether residential or commercial. It’s cheap and lucrative to keep it all in the family . . . for generations!
The “Prop 13 phenomenon” keeps inventory chronically low throughout the state which has the effect of keeping priced pumped up. And it’s not “artificial.” It’s the law!
The only areas Prop 13 really doesn’t affect greatly are those areas which were originally built since 2000, and thus the affected owners are paying market rate (or near market-rate) property taxes. Very few of these newer tracts are within 5 miles of the ocean … nearly all are 6-150 miles from the ocean.
There is absolutely no comparison to the residential market along the CA coast versus any out-of-state market … even along the east coast. None at all. It is truly different … both this time and at all other times.
