Looking at the charts from Rich, you would have to say short term it’s not going to be any better. There should be a nice price jump this spring/summer. Not sure what will happen in the fall, but the short term not looking good. I’ve been tracking Chula Vista/Spring Valley in the $400 range and would say that there has been a significant jump this spring. Obviously this is not new information, just repeating what’s already been said.
Going forward I think there is a better chance that the $400K range will go up to $500K, then go down to $300K. It would be at least a couple years before we see any major correction in prices if it happens at all. Inventory would have to spike significantly.
I think the minimum wage is going to have a big influence on prices. Minimum wage will be $15hr in a few years. Based on that a couple earning minimum wage would be able to qualify for a $200K house. So if prices revert back to $200K in Chula Vista, a couple earning minimum wage each would be able to qualify to buy a house for the first time in history if rates remain the same as today. I could be wrong, but I don’t think that has every happened.
