[quote=sdrealtor][quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.
A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]
js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..[/quote]
sdr and bg,
I think we are talking different scales here. People who want to be by the beach will be. people who want to be near down town will be. But they may choose Leucadia over Encinitas because they get more bang. Or they might choose hillcrest over mission hills. These are not big choices, they are the small incremental choices sometimes just a block or two.
I completely agree with your feeling though that people are not going to move to RB just because it is way cheaper, when they really really want to live by the beach. It is all priorities, and maximizing value. If enough people do that all the way up the price continuum it will start to bite into those super prime locations.
escondido->vista->oceanside->carlsbad->leucadia->encinitas-solona->del mar
