Redfin defines “high end” in that link as averaging $440,000.
Perhaps this is the first SD bull market where the high end does better than the mid and low end, but I’d want to see SD specific data first.
Factors than hold back the high end:
1. harder to rent out/lower cap rate if you do
2. new supply is mostly high end
3. the number of people who can buy and drive up the price of a high-end place is increasingly limited. low end places become the “new middle class” tier as prices rise, and also can be purchased as rentals and renovations/redevelopments.
4. Loans are easier and cheaper if under the conforming limit.
5. Foreign investors favor property they can leave vacant sometimes with low/no landscaping/pool worries and costs. While some high-end condos and townhomes fit this bill, overall high end tends to be on larger lots.
Favoring high end:
1. The rich keep getting richer
2. Work from home means higher demand for larger residential spaces
3. Supply of good location/large lot homes goes down every year (even while distant location and small lot high end keeps being built)
