North County Coastal Market-Why so sticky?

[an]

Talking about undervalue/overvalue/fare-value in 1996-1997, here’s another example. Around this time, a 4/2 ~1300 sq-ft house in Mira Mesa was going for around $120-130k. Mortgage rate around this time was 7-8% for 30 year fixed. Rent for such house was around 1200-1300/month, rent for a 2/2 apartment was around $900/month. Mortgage payment of such house would be $800-950/month with 0% down. When you add in 20% down, monthly payment would be lower (obviously). So, PITI would be about rent if you compare rent vs buy at 0% down (but take rates w/ 20% down). It would definitely be cheaper if you put 20% down and take tax deduction into consideration. I consider that as undervalue. Rent has no government manipulation, so it’s as pure market driven as you can get in RE. If it’s cheaper to buy vs rent, then it’s under value. So yes, I consider 1996-1998 as under value.

[CA renter]

[quote=sdrealtor]FWIW, I just checked and it sat on the market for about 45 days before selling. It wasnt a one of a kind deal, there were others I looked at but that was one that I almost bought and I could easily afford it. Its an example of how undervalued the market was around here back then.[/quote]

Nope, not undervalued. Just properly priced.

Just because you could afford it doesn’t mean it was underpriced. As a matter of fact, it sounds like a very healthy market to me when regular (or professional) people can afford “normal” houses…even if they are near the beach. 😉

[CA renter]

[quote=sdrealtor]FWIW, I just checked and it sat on the market for about 45 days before selling. It wasnt a one of a kind deal, there were others I looked at but that was one that I almost bought and I could easily afford it. Its an example of how undervalued the market was around here back then.[/quote]

Nope, not undervalued. Just properly priced.

Just because you could afford it doesn’t mean it was underpriced. As a matter of fact, it sounds like a very healthy market to me when regular (or professional) people can afford “normal” houses…even if they are near the beach. 😉

[CA renter]

[quote=sdrealtor]FWIW, I just checked and it sat on the market for about 45 days before selling. It wasnt a one of a kind deal, there were others I looked at but that was one that I almost bought and I could easily afford it. Its an example of how undervalued the market was around here back then.[/quote]

Nope, not undervalued. Just properly priced.

Just because you could afford it doesn’t mean it was underpriced. As a matter of fact, it sounds like a very healthy market to me when regular (or professional) people can afford “normal” houses…even if they are near the beach. 😉

[CA renter]

[quote=sdrealtor]FWIW, I just checked and it sat on the market for about 45 days before selling. It wasnt a one of a kind deal, there were others I looked at but that was one that I almost bought and I could easily afford it. Its an example of how undervalued the market was around here back then.[/quote]

Nope, not undervalued. Just properly priced.

Just because you could afford it doesn’t mean it was underpriced. As a matter of fact, it sounds like a very healthy market to me when regular (or professional) people can afford “normal” houses…even if they are near the beach. 😉

[CA renter]

[quote=sdrealtor]FWIW, I just checked and it sat on the market for about 45 days before selling. It wasnt a one of a kind deal, there were others I looked at but that was one that I almost bought and I could easily afford it. Its an example of how undervalued the market was around here back then.[/quote]

Nope, not undervalued. Just properly priced.

Just because you could afford it doesn’t mean it was underpriced. As a matter of fact, it sounds like a very healthy market to me when regular (or professional) people can afford “normal” houses…even if they are near the beach. 😉

[UCGal]

[quote=sdrealtor]An example of undervalued. When I moved here in 1996 I almost bought a shack at the corner of La Veta and Sylvia 2 blocks form Moonlight Beach. It was a 10,000 sq ft lot, two blocks from one of the nicest beaches in SD for $250,000. Best of all the lot was splitable. A liveable but shacklike beach cottage on a nice corner lot plus a buildable lot for $250K. That was a steal! It still haunts me.

I’m pretty sure the buyer split the lot and sold the back portion for what he paid for the whole thing a year or two later. A house built on the back portion sold for 600K in 1999. That owner tried to sell in 2005 between 1.5 and 2M but never did. He (the 1999 backlot home buyer) is still there. A couple years ago, the original buyer on the corner tore down the shack and built a beautiful beach house.[/quote]

My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.

[UCGal]

[quote=sdrealtor]An example of undervalued. When I moved here in 1996 I almost bought a shack at the corner of La Veta and Sylvia 2 blocks form Moonlight Beach. It was a 10,000 sq ft lot, two blocks from one of the nicest beaches in SD for $250,000. Best of all the lot was splitable. A liveable but shacklike beach cottage on a nice corner lot plus a buildable lot for $250K. That was a steal! It still haunts me.

I’m pretty sure the buyer split the lot and sold the back portion for what he paid for the whole thing a year or two later. A house built on the back portion sold for 600K in 1999. That owner tried to sell in 2005 between 1.5 and 2M but never did. He (the 1999 backlot home buyer) is still there. A couple years ago, the original buyer on the corner tore down the shack and built a beautiful beach house.[/quote]

My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.

[UCGal]

[quote=sdrealtor]An example of undervalued. When I moved here in 1996 I almost bought a shack at the corner of La Veta and Sylvia 2 blocks form Moonlight Beach. It was a 10,000 sq ft lot, two blocks from one of the nicest beaches in SD for $250,000. Best of all the lot was splitable. A liveable but shacklike beach cottage on a nice corner lot plus a buildable lot for $250K. That was a steal! It still haunts me.

I’m pretty sure the buyer split the lot and sold the back portion for what he paid for the whole thing a year or two later. A house built on the back portion sold for 600K in 1999. That owner tried to sell in 2005 between 1.5 and 2M but never did. He (the 1999 backlot home buyer) is still there. A couple years ago, the original buyer on the corner tore down the shack and built a beautiful beach house.[/quote]

My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.

[UCGal]

[quote=sdrealtor]An example of undervalued. When I moved here in 1996 I almost bought a shack at the corner of La Veta and Sylvia 2 blocks form Moonlight Beach. It was a 10,000 sq ft lot, two blocks from one of the nicest beaches in SD for $250,000. Best of all the lot was splitable. A liveable but shacklike beach cottage on a nice corner lot plus a buildable lot for $250K. That was a steal! It still haunts me.

I’m pretty sure the buyer split the lot and sold the back portion for what he paid for the whole thing a year or two later. A house built on the back portion sold for 600K in 1999. That owner tried to sell in 2005 between 1.5 and 2M but never did. He (the 1999 backlot home buyer) is still there. A couple years ago, the original buyer on the corner tore down the shack and built a beautiful beach house.[/quote]

My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.

[UCGal]

[quote=sdrealtor]An example of undervalued. When I moved here in 1996 I almost bought a shack at the corner of La Veta and Sylvia 2 blocks form Moonlight Beach. It was a 10,000 sq ft lot, two blocks from one of the nicest beaches in SD for $250,000. Best of all the lot was splitable. A liveable but shacklike beach cottage on a nice corner lot plus a buildable lot for $250K. That was a steal! It still haunts me.

I’m pretty sure the buyer split the lot and sold the back portion for what he paid for the whole thing a year or two later. A house built on the back portion sold for 600K in 1999. That owner tried to sell in 2005 between 1.5 and 2M but never did. He (the 1999 backlot home buyer) is still there. A couple years ago, the original buyer on the corner tore down the shack and built a beautiful beach house.[/quote]

My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.

[an]

[quote=UCGal]
My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.[/quote]
I wonder if 45 years from now, people looking back to today will say, “wow, I can’t believe houses were only $500k back then”. Just like what we say about houses 45 years ago “wow, I can’t believe houses were only $25k back then”.

[an]

[quote=UCGal]
My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.[/quote]
I wonder if 45 years from now, people looking back to today will say, “wow, I can’t believe houses were only $500k back then”. Just like what we say about houses 45 years ago “wow, I can’t believe houses were only $25k back then”.

[an]

[quote=UCGal]
My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.[/quote]
I wonder if 45 years from now, people looking back to today will say, “wow, I can’t believe houses were only $500k back then”. Just like what we say about houses 45 years ago “wow, I can’t believe houses were only $25k back then”.

[an]

[quote=UCGal]
My dad had the opportunity to buy an oceanfront lot, on the boardwalk, in Mission Beach – down near the jetty – for $25k in 1965. He thought it was too expensive since he’d have to build a house. He regretted that for the rest of his life.

Instead he bought a foreclosure for $29k in UC. It was less than 18 months old, he assumed the first mortgage (no down payment) and the bank wrote off the 2nd that the previous owners had taken out to put in a pool, etc. It was a great deal. BTW – I bought it from him at market value in 2003 – for $600k. Not quite as screamin’ a deal.[/quote]
I wonder if 45 years from now, people looking back to today will say, “wow, I can’t believe houses were only $500k back then”. Just like what we say about houses 45 years ago “wow, I can’t believe houses were only $25k back then”.

[Author]

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