Yes but that teacher and correctional officer probably have been in the area for a decade or more and likely has quite a bit of equity that can burn off the $250,000 house they bought in 1997 with 20% down.
Do you really think they’d buy a new $700K house in this case? Holy cow, that’s a huge increase in property tax, and their 1997 house, if it’s in La Costa, is probably already worth $700K. So let’s see, honey, should we take a little HELOC and add that extra bedroom, or should we sell, pay huge $$$ in commisions, and triple our property tax payment? Oh wait a minute, these are government employees we’re talking about. Yep, you’re right, they probably would do that 🙂
In all seriousness, the original post said that the big increase in government money was going to bring lots of new homeowners into SD, enough to purchase our excess inventory. So that theory relies on new people moving in from out of town, not folks that have been here for ten years.
