I believe the original post said “an additional 47%”. Now that is not nominal that is said to be adjusting for inflation. Ah okay then… so if inflation is say 8% a year then yes it is VERY easy to see 47%. Basically if pricing remains even for several years then effectively you get to 40% pretty damn fast.
Now if you are thinking you will get a million dollar home for 530k then …. well I will meet you there.
If you think that the current homes in Mira Mesa that are priced near 300k right now will go for 170k then I simply don’t agree.
Now in 5 years will your US dollar be worth 47% less? Well now that is a definite possibility. However if you take that argument and twist it around then unfortunately it makes more sense to put your dollars into ANYTHING that will depreciate LESS then themselves.
Once more this is not an argument to say that fundamentals are not out of whack. Nor is it an argument to defend the San Diego premium. We soon will be living in a state that will have 12% state income tax, couple that with what will be higher federal taxes if/when there is a new president, then many people on this site will be paying close to 50% income tax. 50%… Those of us that live here in San Diego will be living in a county where the median income to price ratio makes no sense, paying taxes that make no sense.
So do you really honestly in your heart believe that the more desireable neighborhoods in San Diego will ever, EVER revert to “fundamental” ratios of say 3-4x median income?
