[quote=flyer]Although I don’t care to live in a dense concrete jungle–and don’t have to–I’ll always be glad to see a constant inflow of real estate buyers and renters.
Unfortunately, many who were raised here may be shut out because of this competition for limited resources in a state like CA, and may consider it unfair, but for those who own properties, values should stay up and increase in the near term.
Imo, the real concern with property values in places like CA, may come when current and new worker bees try to retire and realize they can’t afford to stay here. Hopefully there will be always more to replace them in the pipeline, as well as the continuing inflow of foreign funds.[/quote]flyer, I agree that it will primarily be the higher-paid “worker bees” and foreign funds that keep the residential RE values in CA coastal counties “propped up” into perpetuity although there is no guarantee of runaway double-digit appreciation going forward nor should there be. I don’t think mortgage interest rates will matter that much … especially in the most exclusive, established coastal areas.
I don’t agree that most homeowners either soon to retire or already retired can’t stay in their long-owned coastal CA home for the rest of their lives. I believe the vast majority of them can and will. Quoting Pigg shoveler, they are “forever priced into” the area they purchased in long ago and nothing else nationwide is really cheaper for them once property taxes and homeowner’s insurance are factored into the equation (Props 13, 58 and 193 and the fact that the CA coast isn’t subject to tornadoes, hurricanes and ice storms, etc). Many “cheaper” retirement locales in the US have exorbitant homeowner insurance premiums and also require homeowners to have (expensive) “riders” for flood and wind damage.
