Diego Mamani, how will we return to historical ratio of per capita income/median house price of 7, unless prices drop about 50% or wages rise? With global low wages, I dont’ see how wages can rise. Wages have been flat for about 7 years now. There has been lots of data on this blog about that fact.
The SD economy is completely dependent on us buying and selling homes to each other. I wrote an analysis of the SD job market and economy, based on my own research and my attendance at the SD May 2006 UCLA Anderson Forecast. I posted on this blog. See here . We are going to see *massive* job losses in San Diego, and unemployment will skyrocket to over 8%, reduced to 6.3% only because of the huge exodus of people leaving.
Today the salesman at the music store told me that 10 of his friends left San Diego in the past year, because of our high cost of living. He mentioned Lake Elsinore as a destination. People are leaving San Diego at the rate of 44,000 annually (Census Bureau data). There is no disposable income left for housing; people are using credit cards to pay utilities and food. Where are you getting your data?
Productivity has grown about 7x faster than wages. So what? We are more productive, but inflation is running at 8%. Forget the government cooked numbers, I am talking about true inflation. Wages are flat. Read the previous threads; it is all here.
Many houses are selling for 2004 prices, or are listed at 2004 prices. It is safe to say that anyone who bought their house in 2004 or later, has lost money on their San Diego home.
