San Diego Inventory Sucks…

[SmellsFeeshy]

[quote=AN]Sorry to hear about your frustration. That’s my experience as well when I considered moving up there a few years back. The cost of living increase far out weight the income increase. Which is why I decided to stay. I said this in another thread awhile back. It seems like it’s worse now. A 2/2 in SD near work center can easily be had for $200-300k. So, you’re looking at cost of living that’s 2-3x more but income is only at most 25-30% higher (that’s also before tax).[/quote]

Yeah, it seems the market up here recovered much faster than down in SD (maybe 1-2 years sooner). I guess that’s what happens when jobs are plentiful. Based on my observations 2x-3x would seem a bit high. I would say a more fair comparison would be comparing a condo in UTC to a comparable condo in Redwood Shores, Foster City or Mountain View. If the former sold for $450k a similar condo in the latter would sell for around $600k (which is a little over 30% more) so the numbers are actually pretty close if income is 30% higher.

Similarly a 200-300k condo in Mira Mesa would be worth about $300-400k in somewhere like Milpitas.

[an]

[quote=SmellsFeeshy]Yeah, it seems the market up here recovered much faster than down in SD (maybe 1-2 years sooner). I guess that’s what happens when jobs are plentiful. Based on my observations 2x-3x would seem a bit high. I would say a more fair comparison would be comparing a condo in UTC to a comparable condo in Redwood Shores, Foster City or Mountain View. If the former sold for $450k a similar condo in the latter would sell for around $600k (which is a little over 30% more) so the numbers are actually pretty close if income is 30% higher.

Similarly a 200-300k condo in Mira Mesa would be worth about $300-400k in somewhere like Milpitas.[/quote]
$450k for a 2/2 UTC is an exception. Most 2/2 in UTC are 200-250k (<1000 sq-ft) or $300-$350k(>1000 sq-ft). How big are the 2/2 in Redwood Shores? So, the $600k in Redwood Shores, Foster City, Mountain View are 2-3x more.

Besides UTC, you also have option like CV. Where in that area would be w/in 5 miles from major high tech jobs and have the kind of school CV does. Then there’s the cost of a condo in CV: http://www.sdlookup.com/Real_Estate-Carmel_Valley-Condos_For_Sale-92130. You can get 2/2 low $200k in CV. For $450k, you can get a 3/3 in CV. CV school is more in line with Palo Alto, Los Altos, Cupertino and not Redwood Shores, Foster City or Mountain View. Even MM schools would embarrass Redwood, Foster, Mountain View schools.

WRT to MM vs Milpitas, schools in MM is better. I can get to major tech companies in 3 miles while Milpitas is at least 10 miles to Mountain View and if you work around Palo Alto, then it’s much further. Then we get to the price. A 4/3 in Milpitas is currently going for $700-850k. Similar house in MM goes for $450-530k. It’s much easier to come up with $90-100k than $140-170k. Wouldn’t Milpitas distance to big high tech companies would put it more comparable to San Marcos, Escondido, Santee? Then there’s also the fact that, if I have $170k, I rather buy a $500k house and use the remaining $70k to buy a couple investment properties that have CAP rate of 8-10%.

[SmellsFeeshy]

[quote=AN]$450k for a 2/2 UTC is an exception. Most 2/2 in UTC are 200-250k (<1000 sq-ft) or $300-$350k(>1000 sq-ft). How big are the 2/2 in Redwood Shores? So, the $600k in Redwood Shores, Foster City, Mountain View are 2-3x more.

WRT to MM vs Milpitas, schools in MM is better. I can get to major tech companies in 3 miles while Milpitas is at least 10 miles to Mountain View and if you work around Palo Alto, then it’s much further. Then we get to the price. A 4/3 in Milpitas is currently going for $700-850k. Similar house in MM goes for $450-530k. It’s much easier to come up with $90-100k than $140-170k.[/quote]

Well I wouldn’t say it’s a fair apples to apples comparison you’re describing since you’re comparing the bottom end of the market in UTC to the upper end of the market on the SF Peninsula. Something comparable in square footage and amenities to a mid-range $300k condo in UTC might run around $450k on the Peninsula.

As far as schools I can’t comment but commute it really depends on where you work. There are plenty of tech jobs in San Jose close to Milpitas which would be similar to commuting to Sorrento Valley from MM.

[an]

[quote=SmellsFeeshy]Well I wouldn’t say it’s a fair apples to apples comparison you’re describing since you’re comparing the bottom end of the market in UTC to the upper end of the market on the SF Peninsula. Something comparable in square footage and amenities to a mid-range $300k condo in UTC might run around $450k on the Peninsula.

As far as schools I can’t comment but commute it really depends on where you work. There are plenty of tech jobs in San Jose close to Milpitas which would be similar to commuting to Sorrento Valley from MM.[/quote]
You’re right. It depends on where you work. The companies that I’m interested in (Google, Apple, etc) are not in San Jose. If you work in San Jose, then you’re right, the commute wouldn’t be too bad. But if you get a job in the Peninsula, which a lot of the tech jobs are), the commute would be bad and you’d have no option like MM. Which were where I got the offers from. I might have a different opinion if the offers I got were in SJ.

You’re right, it might not be fair to compare the $200-250k in UTC to the $600k in the Peninsula. But my point is, there’s no $200-250k option up there like down here. Here, you can make $100k/yr and have an option to buy a 2/2 for $200k. Up there, if you work in the peninsula, you don’t have the same option. If you make $130k up there compare to down here, your cheapest option is well over $400k. You don’t have an option to live conservatively up there.

Then if you want to move up scale, there’s CV, you have something like this: http://www.sdlookup.com/MLS-120053182-12366_Carmel_Country_Rd_107_San_Diego_CA_92130 for low $300k. Anywhere in the peninsula that have the kind of schools CV has, that same place would easily go for $700-800k.

[SmellsFeeshy]

[quote=AN]You’re right. It depends on where you work. The companies that I’m interested in (Google, Apple, etc) are not in San Jose. If you work in San Jose, then you’re right, the commute wouldn’t be too bad. But if you get a job in the Peninsula, which a lot of the tech jobs are), the commute would be bad and you’d have no option like MM. Which were where I got the offers from. I might have a different opinion if the offers I got were in SJ.

You’re right, it might not be fair to compare the $200-250k in UTC to the $600k in the Peninsula. But my point is, there’s no $200-250k option up there like down here. Here, you can make $100k/yr and have an option to buy a 2/2 for $200k. Up there, if you work in the peninsula, you don’t have the same option. If you make $130k up there compare to down here, your cheapest option is well over $400k. You don’t have an option to live conservatively up there.

Then if you want to move up scale, there’s CV, you have something like this: http://www.sdlookup.com/MLS-120053182-12366_Carmel_Country_Rd_107_San_Diego_CA_92130 for low $300k. Anywhere in the peninsula that have the kind of schools CV has, that same place would easily go for $700-800k.[/quote]

Based on that criteria I’d say you made the right decision to stay in SD. Bottom line it just depends on what your priorities are. If your top priorities are close commute to tech jobs and good schools then SD is pretty hard to beat. But up here I can drive to San Francisco in 30 mins for great food and culture, or drive 1.5 hours to Laguna Seca for a track day. That’s definitely something I can’t do in SD ;).

[an]

[quote=SmellsFeeshy]Based on that criteria I’d say you made the right decision to stay in SD. Bottom line it just depends on what your priorities are. If your top priorities are close commute to tech jobs and good schools then SD is pretty hard to beat. But up here I can drive to San Francisco in 30 mins for great food and culture, or drive 1.5 hours to Laguna Seca for a track day. That’s definitely something I can’t do in SD ;).[/quote]That is very true. If I’m a SINK or DINK, I’d probably be up there as well. Because like you, I’d probably take advantage of food in SF and Laguna Seca (as well as Tahoe), just like you. But priority change when I have dependents and gotten the desire to retire early. It’s much harder to achieve that up there. Down here, I can have a big home near work with good school as well as have enough extra money to buy investment properties. No way I can do the same up there.

[Coronita]

Well, looks like we have bubblicious pricing again…

2/2 at the time last year in a nicer community was going for about $190-200k.

http://www.sdlookup.com/MLS-130000265-8460_Capricorn_Way_64_San_Diego_CA_92126

http://www.sdlookup.com/MLS-120058474-8538_Summerdale_Rd_111_San_Diego_CA_92126

http://www.sdlookup.com/MLS-120048653-10154_Camino_Ruiz_8_San_Diego_CA_92126

Ouch.

[an]

Right now, there are only 18 SFR and 5 condo for sale. The supply is pretty horrible right now.

http://www.sdlookup.com/MLS-120057099-10823_Deering_St_San_Diego_CA_92126
This one probably would sell in the high $300k this time last year.
http://www.sdlookup.com/MLS-120055820-11326_Porreca_Point_San_Diego_CA_92126
This one probably would sell in the mid-high $400k last year.

[Coronita]

gonna get worse me thinks.

[SD Realtor]

If worse you mean prices will move up…yes that has been happening and will continue to do so. It is a frustrating time right now.

[an]

[quote=flu]gonna get worse me thinks.[/quote]I think so too. I dunno what to think about it.

[Coronita]

This is a joke right?

http://www.sdlookup.com/MLS-130003288-10278_Black_Mountain_Rd_179_San_Diego_CA_92126

WTF????

[an]

You ask for more inventory, right? 😀

[an]

Wow, they just increased the price by $9900 or 5.5%.

[Coronita]

[quote=AN]Wow, they just increased the price by $9900 or 5.5%.[/quote]

You know, I was gonna say good luck finding a buyer for a 1/1 @ $180k…

Then again, we saw one go recently for $165k…Maybe someone will bite..

Me thinks you’re gonna see nice appreciation in your next of the woods this year, lizards included. Probably see a greater % increase versus CarmelV.

Lol. I laugh at the comment in that MLS…

“This is a normal sale. ”

Dude, this is anything but normal.

[Author]

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