If I was thinking about buying right now I’d be very concerned with how high prices are. I’m still hesitant to throw around “Bubble”, although we’re creeping in that direction. Lending standards are still a lot tighter than they were during the Bubble.
Some fundamentals are off (income ratio) but others like the Rent/Buy ratio are fine. San Diego, especially the “Desirable” areas of San Diego County does have a supply crunch. Especially if you’re not looking to but a $1.2M giant home on a small lot in Del Sur. New construction of “starter” homes is basically non-existant.
Since supply is unlikely to catch up with demand in the short run, it’s more likely that rising rates will be what finally slows prices. It’s entirely plausible that coastal SD County will be a lot like San Francisco in 10 years, where most people who work in the city can’t afford to live anywhere near the city.
