“The problem becomes much more unpredictable, especially when those with large reserves start to get involved.”
They are involved. Cash or close to cash transactions seem to be the norm nowadays on the best coastal properties with the best schools. While there have been a few good deals struck on the coast for most of us they are an illusion because we didn’t honestly have much of a shot at buying them. That’s why the normal sellers are holding firm. They know that some buyer is going to get tired of playing games with the banks and come looking for something they can actually buy.
Ten years ago folks that got priced out of Carmel Valley, Del Mar and La Jolla had the option of buying in the sleepy towns called Carlsbad and Encinitas. Those that took the risk and bought up north have now been substantially rewarded as these areas have IMHO now become premier areas to live and most owners have deep equity positions.
Instead of asking the question of what are good affordable areas that have perhaps not yet been discovered, most people on this board seem obsessed with hoping the train comes back to the station. Once the rich folks get involved the train rarely makes a second pass. I have seen this happen with countless areas around the country.
