[quote=SD Realtor]Jazz I understand what you are saying to a point. Sadly, and by far, the majority of sales people in the real estate industry misinform buyers and do indeed put pressure on them to buy homes. There is and will never be any argument to that.
Don’t confuse getting an offer accepted under market price, with desireability of a region as a whole. How many dual income engineers who want to live in an astounding climate, with plenty of jobs and very highly regarded school systems will buy homes in France, Maui, and Santa Barbare? How many? Not many at all. Last I checked Santa Barbara was not known for affordable homes. The point I am making is that San Diego offers a variety of opportunities that are pretty much not found in many places around the world with regards to employment, climate, quality of life, and variety of different areas to live in.
This by no means indicates it is impossible to get a home below market price. It does however indicate that for the same size home in pretty 90% of the USA with the exception of other large coastal cities with a large employment base, you will always pay less. This is the desireability that I am referring to and this is why prices will always be higher. Your 3000 sf home in 4S ranch will always be double or even more then the same home in Dallas. It is not ever going to scale the same.
This does not indicate prices will not go up or down in San Diego, personally I believe the biggest driver of prices will be interest rates and lending conditions. However scale that across the country and San Diego is and always will be higher.[/quote]
Good post, SDR. I agree with all of it except that the biggest driver of prices will be interest rates and lending conditions. Historically (between 1964 and 2004) interest rates were higher than now … sometimes MUCH higher and the RE market survived … even flourished. Prior to about 2003, there WERE FF lending standards in place and even standards to qualify for an (in-house) portfolio jumbo loan. It is only since then that lending standards were loosened beyond all recognition.
I believe that there are WAY TOO MANY cash buyers and buyers who take out mortgages equaling less than 50% of the appraisal price in the SD region to cause the most desirable areas to be price-sensitive solely on “interest rates and lending conditions.”
And you forgot to mention that, for the insured person, the choice of renowned medical practitioners to choose from in this region is bar none. THIS IS NOT THE CASE is some of those “cheaper housing areas” across the country.
If a prospective buyer does not like what they can get in SD County for the price they are willing to pay, then they need to shop elsewhere for a home, continue to rent here or decide not to relocate here after-all. It’s as simple as that.
