Essentially, what I’m trying to say here is that many first-timers coming into the market today will actually NOT purchase anything that wouldn’t be considered a “move-up” property. They wish only to go from nothing or a rental to a “move-up” property.
I believe RE in coastal CA counties is categorized in a “caste system.” Thus, there are first-time properties, move up properties and luxury properties. Many areas and zip codes have all three within them. Some areas have nicer properties for the money than other areas. One has to have “sweat equity” and “pay their dues” before “moving up” to the next rung of RE.
That’s the way it always was before lending “funny money” became the norm.
The “funny money” flowing for years caused first timers and other moderate income buyers expectations to be all over the map … into the stratosphere. The presence of layers of new urban sprawl coming online during the same time period didn’t help matters any.
I’ll say it again. A buyer in a coastal CA county taking out a 80% mortgage or better doesn’t NEED infinite choices. They need to know where they can afford to live and how big of a lot they need. The rest will eventually take care of itself :=]
