[quote=ybitz]
A 3000 sq ft house is a “starter home”?
you can easily find a “starter home” in scripps ranch in 1999 for under 300k. For example:
11368 Red Cedar Way, detached SFH, 3 beds, 2.0 baths, 1,384 sq ft, sold on 01/22/1999 for $194,000. A little small, but it’s good for a starter. That’s just from 10 minutes of zillow browsing. I’m sure you can find many larger houses for under 300k in 1999.
This home’s value went up 2.6 times in just under 10 years. How can this price be sustainable, when people’s income did not go up 2.6 times in the last 10 years (even adjusting for inflation)? Shouldn’t the value of a home track local income? Based on the numbers, I think Scripps Ranch has a lot to fall still.[/quote]
If you would just read the description of the 2nd house, you’d understand why they’re expecting $799k. It’s a newly rebuilt home, probably got burn down in the last fire that swept through Scripps. Although I don’t think it’s worth $799k, it’s not an apple-to-apple comparison. What was the size of that house in 1999? The original house was built in 1976, so in ’99, it was a 23 years old house.
Regarding the first house, that’s a 1300 sq-ft house. A 1300 sq-ft house in MM in 1999 was around $140k. So, $194k would be ~40% premium. A 1300 sq-ft house in MM today is ~$350k today, 40% premium would put it ~$490k today. Which those houses are going for today.
