I agree that the real world price is much closer to the $550k. I’ve lived in La Jolla & PB the last 5 years and still am not sure how most recent purchasers are affording things. (Well I guess we are finding out they can’t and that is why we are seeing increase in REO)
Before this speculative run the property would have been around $500k in 2001 or 2002. Whether it is $500k back in 2002 or $500k today, how many can actually comfortable afford a Conv. 30yr mortgage of $500k….not many.
