Do you really think the pricing structure here was created by people moving into town?
You’re using a variation of the “everyone wants to live here” comments that the RE bulls were using to explain the now-discredited New Paradigm and it’s later iteration, the Soft Landing.
I suppose it could happen, but I’d have to see it first and so far there’s absolutely no indication that it will happen. At the moment, we have population outmigration as far as the homeowner class is concerned. More are leaving than are coming in.
Even La Jolla and Del Mar are slow right now, and the shadow areas of Rancho Santa Fe are in some real trouble. We haven’t imported enough outside money to prop those areas so far; what makes you think it’s going to happen in the next few years? The first 50% of the Boomer generation is already of retirement age and so far they haven’t shown up yet.
Homes in the coastal region, which only extends about 3 miles inland, comprise but a fraction of the total housing inventory. Is that fraction of sufficient size to cause all the other areas to be overvalued relative to the local economy by 100% or more?
