High End Homes Surge

[Anonymous]

[quote=XBoxBoy]More evidence that bidding wars and rising prices isn’t unique to NCC:

https://www.redfin.com/news/seattle-homes-sold-above-list-price/%5B/quote%5D

There is only one person on here who truly believes that NCC is unique. Let them remain in their bubble.

The real issue at hand, large investment groups purchasing RE all over the country, is finally becoming reported on more and more. Blackrock being the most widely known.

It is sad that nobody in mainstream media or congress has any awareness or care about this issue which is destroying the homeownership possibilities for an entire generation. This is what happens when the Fed forces interest rates to 0 indefinitely. Meanwhile when Congress meats with Fed Chair Powell the other day all they do is kiss his ass and thank him for his service. Not any tough questions, no criticism of the Fed policies that are causing the crazy rise in home prices. The Democrats are an especially clueless and worthless group. They are supposed to represent the middle and lower class, the same demographic that is getting destroyed by the Fed. They offer no criticism at all.

[sdrealtor]

There is only one unhappy renter constantly using strawmen. No one ever said this isnt going on everywhere. What Ive said over and over is that there is more going on along the NCC than just this. There is a fundamental shift happening as to who lives up here. There was never a healthy $2M plus market here. Those folks just went other places until recently. Now homes routinely sell for $2 to 8M to out of area buyers. We have never seen that before up here. Sales in the $2M+ plus category in S Carlsbad and Encinitas are up over 100% y-o-y

And investment groups are not purchasing homes to any degree in SD unless it is old obsolete homes to flip. Ive seen no evidence of groups holding them as rentals

[Anonymous]

Yes there has been a demographic shift going on for coastal san diego for decades in terms of more wealthy people moving here from all over the world. That trend is nothing new. If perhaps that was accelerated during the pandemic I expect that to reverse course as Pandemic policies also reverse back to normal.

Also, expect this work at home thing to go away for most people in the very near future. Going to be a rude awakening for folks.

[flyer]

We’ve also seen a demographic change among those renting and those buying everywhere we have property, and, as mentioned, it isn’t just happening in San Diego.

Along with other variables in play, it seems the pandemic unleashed an inner awareness among renters and buyers that, for those who can afford it, they might as well live life the way they want to live it here and now, rather than wait for retirement–which is a philosophy I’ve always espoused–especially since life is short.

Whether this new normal is sustainable, and, if so–what the negative impact of this new normal might be for society as a whole–only time will tell.

[gzz]

“Ive seen no evidence of groups holding them as rentals”

This giant private equity SFH landlord has some properties in SD City. None are currently for rent, but you can see they have 20+ for rent the greater LA and IE area.

https://www.invitationhomes.com/

The SD one I saw earlier on their website I think was in San Carlos.

[XBoxBoy]

[quote=sdrealtor]There is a fundamental shift happening as to who lives up here. There was never a healthy $2M plus market here. Those folks just went other places until recently. Now homes routinely sell for $2 to 8M to out of area buyers. We have never seen that before up here.[/quote]

To me, this is the most interesting part of what you have been reporting about NCC. We’ve had 2+ million homes in La Jolla, Coronado, and Rancho Santa Fe, and even some in Mission Hills for a long time. But in the past I would occasionally look on Zillow at NCC and not see much above 2. More recently, I’ve seen a lot of 2+ million dollar homes. (And from what I see on zillow, they look pretty nice.) This doesn’t surprise me since I’m a firm believer that areas change, cycling up and down. (Kensington was a dump in the 60s and 70s from what I hear, but pretty nice in parts now.)

Additionally, be sure to note in that above article, the number one destination for people living in LA who want to relocate: San Diego. Maybe it’s just my biases, but I suspect they aren’t looking to move to El Cajon, but NCC.

[sdrealtor]

[quote=gzz]”Ive seen no evidence of groups holding them as rentals”

This giant private equity SFH landlord has some properties in SD City. None are currently for rent, but you can see they have 20+ for rent the greater LA and IE area.

https://www.invitationhomes.com/

The SD one I saw earlier on their website I think was in San Carlos.[/quote]

I would not be surprised if they owned some but if they do they are only a handful. I know more than a handful of individuals that own over 20 homes in SD. Heck Flyer may himself. But again Ive seen no evidence they own them which tells me they are not having any measurerable impact here

There are no homes owned under the Invitation Name int he tax records so if they do they are under other names. if you can provide address of san Carlos home that would help me to do some more sleuthing. I checked Blackrock and there is a Blackrock LLC that owns 17 properties though nearly all are vacant land in Valley Center or escondido

[Anonymous]

[quote=sdrealtor][quote=gzz]”Ive seen no evidence of groups holding them as rentals”

This giant private equity SFH landlord has some properties in SD City. None are currently for rent, but you can see they have 20+ for rent the greater LA and IE area.

https://www.invitationhomes.com/

The SD one I saw earlier on their website I think was in San Carlos.[/quote]

I would not be surprised if they owned some but if they do they are only a handful. I know more than a handful of individuals that own over 20 homes in SD. Heck Flyer may himself. But again Ive seen no evidence they own them which tells me they are not having any measurerable impact here

There are no homes owned under the Invitation Name int he tax records so if they do they are under other names. if you can provide address of san Carlos home that would help me to do some more sleuthing. I checked Blackrock and there is a Blackrock LLC that owns 17 properties though nearly all are vacant land in Valley Center or escondido[/quote]

It doesn’t matter how many properties they own. The real effect is if they are actively bidding on properties which raises prices.

[sdrealtor]

[quote=XBoxBoy][quote=sdrealtor]There is a fundamental shift happening as to who lives up here. There was never a healthy $2M plus market here. Those folks just went other places until recently. Now homes routinely sell for $2 to 8M to out of area buyers. We have never seen that before up here.[/quote]

To me, this is the most interesting part of what you have been reporting about NCC. We’ve had 2+ million homes in La Jolla, Coronado, and Rancho Santa Fe, and even some in Mission Hills for a long time. But in the past I would occasionally look on Zillow at NCC and not see much above 2. More recently, I’ve seen a lot of 2+ million dollar homes. (And from what I see on zillow, they look pretty nice.) This doesn’t surprise me since I’m a firm believer that areas change, cycling up and down. (Kensington was a dump in the 60s and 70s from what I hear, but pretty nice in parts now.)

Additionally, be sure to note in that above article, the number one destination for people living in LA who want to relocate: San Diego. Maybe it’s just my biases, but I suspect they aren’t looking to move to El Cajon, but NCC.[/quote]

Ive seen them up here and had listings for $2M homes in last several years and there was virtually no market for them. They did not sell. Im seeing more homes in prime beach areas hit the market then ever before. A lot more. In the past there wasnt much of a market for a $1M-3M tear down. There is now

In RSF there were always a couple hundred for sale but sales were very slow. I have not checked if thats changed but Id suspect it has. The issue with Rancho is many of these homes are old functionally obsolete homes that need to be torn down. Prior to the recent changes in buyer wants they havent wanted lots of land to care fore but now people want more space so it would not surprise me to see that market has improived dramatically also

[sdrealtor]

[quote=deadzone][quote=sdrealtor][quote=gzz]”Ive seen no evidence of groups holding them as rentals”

This giant private equity SFH landlord has some properties in SD City. None are currently for rent, but you can see they have 20+ for rent the greater LA and IE area.

https://www.invitationhomes.com/

The SD one I saw earlier on their website I think was in San Carlos.[/quote]

I would not be surprised if they owned some but if they do they are only a handful. I know more than a handful of individuals that own over 20 homes in SD. Heck Flyer may himself. But again Ive seen no evidence they own them which tells me they are not having any measurerable impact here

There are no homes owned under the Invitation Name int he tax records so if they do they are under other names. if you can provide address of san Carlos home that would help me to do some more sleuthing. I checked Blackrock and there is a Blackrock LLC that owns 17 properties though nearly all are vacant land in Valley Center or escondido[/quote]

It doesn’t matter how many properties they own. The real effect is if they are actively bidding on properties which raises prices.[/quote]

Again Ive seen no evidence of that or heard about that around here. I know and talk to many big producing agents and have yet to hear one say they got an offer like that. They own hundreds in Riverside County. Nearly all are in lower end working class communities. Not seeing any evidence they have any impact here though. If gzz can get me that address in san carlos I can do more sleuthing

You poke me for bringing anecdotes and then are trying do the same. get proof, real data

[Author]

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