[quote=threadkiller]…With affordability at all time highs/lows (however you want to look at it) why is it that the above average person can’t even buy a below average new house in San Diego…[/quote]
TK, I don’t recall a time when the “above average person” or any first-time buyer, for that matter, aspired to a new construction purchase in SD unless it was a condo or had a low-income financing package attached to it.
This “desire” of first time buyers could be compared to a newly-minted military wife of all of 18-22 years old waltzing into town and demanding a unit in Pacific Beach, Coronado or Pt Loma from the Navy Family Housing Office (yes, this happens every day). Never mind they grew up in a double-wide in Kentucky. They have decided they will NOT accept a unit unless it is located in one of those three areas. Hence, they end up taking the housing allowance and paying rent somewhere (likely NOT in one of their desired areas, lol) while they waitlist, often for years. When they can’t manage their rent and utility bills, they give up and move back “home,” wherever that is, to await the arrival of their deployed spouses and also usually their 1st, 2nd, 3rd or 4th child.
It seems there may be a pervasive mentality among first-time RE buyers that it’s all or nothing … exactly what they desire now or no purchase at all. What’s wrong with a “good enough for the next 5-10 yrs” property? How about a sweat-equity fixer in a GREAT location?? How ELSE are you going to buy in that GREAT location??
Some food for thought: What constitutes an “above average” buyer in your mind? And how many of these “above average” buyers with the best intentions are still “above average” three years after moving in? And why do they feel if they can’t purchase *new* construction that there are no other purchase options??
