I’ll offer a different angle on the Carlsbad $100 a square debate. I paid about $90 a foot for my Temecula palace. I got ten fire insurance quotes and all of them claimed it would cost more than that to rebuild it. So effectively the land has zero value. Building costs can fluctuate but $100 a square is lowball estimate for building costs.
Land and location still has value, it had value in the great depression and it will even in GDII. Even with 25% unemployment, the other 75% would choose to move to nice coastal communities if the prices were the same everywhere, that very fact won;t allow the prices to be the same everywhere, supply and demand still rule the day. WIll coastal N. County go down, ABSOLUTELY!!! Because it hasn;t gone down the same percentage as other areas so it owes the invisible hand about 25%. Will it get to $100 a square with regularity, Hell NO!!!
It will get to 2001 pricing, not 2001 Santee pricing but 2001 pricing for the same house. In 1991 I paid $100 a square in Temecula, when it had two grovery stores and stop signs at the offramps. That was for a small home and sq ft always cost less the larger the home is but to think the fair price for carlsbad is equal to the 1991 Temecula price is absurd. Be prepared to be lucky to get the 2001 price or get a map and pick a new town cause wishing aint gonna do it.
