[quote=exsdgal][quote=CA renter]
Irrespective of interest rates? What about if/when the investors get out of the market? That could increase aggregate supply and decrease demand at the same time.[/quote]
Afaik PQ did not have much investor activity relating to SFH during the downturn. There were good pricing on the condo’s and not as many for single family residences. The few that did crop up required a fair amount of slab/foundation repairs.
Just considering one qualification – school district, I think PQ has some unique characteristics. 1) mostly low/zero mello-roos 2) good schools 3) great proximity to different work centers 4) ability to find decent sized lot homes sometimes w/ views 5) year around temperature
Folks who want to be in CV / Del Sur / 4S / Santa Luz will go for such places. If I were in the market for a primary residence in Poway Unified district I would give serious consideration to PQ. Just for a simple reason that a comparable 700-800K PQ lot home will cost 1mil+ in the new developments w/o counting the mello-roos/hoa etal.[/quote]
Absolutely, there is no question that some areas saw more speculative activity than others. But aggregate inventory levels do affect prices of the more stable areas, too. And while many people who buy in the areas you’ve listed have some money, there are still plenty of people who rely on mortgages in order to buy. Interest rates will still affect them as much as they’ll affect people buying lower-priced homes.
