I think many, many young couples with good incomes and some savings are opting out of CA at this point. I just met a girl (well, I guess we are women at almost 40yrs old now) the other day at my kids’ little school (public). She is a lung doctor and also raised in beautiful San Diego. Husband also has a fantastic job. No shortage of income or cash, but they felt they were priced out of CA – and left.
As cyphire says – the prices for small 3 bedrooms in places like DelMar, where people like this would want to live, are not realistic. It is not a matter of not being able to afford 1.5m for some people … it is the fact that WHAT YOU GET FOR 1.5M IS NOT WORTH IT.
So I am of the camp that there are very few 1st time buyers out there with any hope of buying in at even $400k, and of the few that do have cash, they will find what is available at that price unappealing.
