There are a lot of real estate statements that are being bandied about that do “tend” to be true, but like newtonian physics, those statements tend to break down in extreme circumstances.
“Housing always goes up.” – Yes, this tends to be true, BUT the caveat is that you have to own it for at least 10 years. As we can see, living in a house for a couple of years does not guarantee that the house will fetch its original price.
“They’re not making any more land.” – Another true statement, HOWEVER money tends to travel in the direction of easiest resistance. Alex made the statement that there is no land left in coastal San Diego and to a certain degree he is correct. There is only small minor in-fill development left there at best. However, coastal San Diego has an escape valve through inland San Diego and then on to Riverside. So while it is true that coastal San Diego will probably hold its value well as compared to other parts of San Diego, that does not make it immune to lowering housing prices. Still, I will say that the amount of capital required to even build a shack in coastal San Diego is so high and it is so difficult to build there that it might as well be left to the extreme rich. Processing through the coast commission is an exercise in the inefficiency of government.
Lastly…
“Everyone wants to live here.” – An employer I know just received an application from Washington state and we were both puzzled because the job he applied for is a pretty low paying albeit skilled job. There are others also I’ve seen who have been moving in here and I am sure there are lots of others who are leaving. Still, San Diego is a good place to live but in extreme circumstances (like the high cost of living) this “everyone wants to live here” statement tends to break down.
Anyways, my two cents worth. I don’t take offense to a lot of people saying these statements and most everyone of us shouldn’t but we should at least note that in extreme circumstances, simplistic rules and statements can break down and be wrong. It helps to know the reasoning behind those statements.
