Solana Beach Oceanview Condo’s Still Expensive

[blahblahblah]

…how did a $217,000 dollar condo become $1,000,000?

Two reasons:

1) Securitization of loans allowed lenders to pass off mortgage risk to 3rd parties rather than holding it themselves. They only have to hold the loans long enough to fob them off on the next sucker, so why bother making sure that the borrower is good for the money? And of course they pushed the ARM products so that initial payments were low. This allowed a much larger pool of buyers to enter the market than would normally be possible. Supply held constant, this pushed prices way up.

2) Inflation. How did a gallon of milk become $5? How did your dollar go from being worth 1.25 euros 8 years ago to being only worth .7 today?

[HappyHouseHunting]

Inflation does account for some increase sometimes, but not always. I certainly do not expect homes to go back to say, 1960s home prices. My parents bought their small home in 1963 for $19,000 and in Southern California, that is not going to happen again. (There are parts of the country where that is true though.)

Homes can most definitely depreciate though. Using a generic inflation calculator online shows a value of $437,000 (approximately for this home).

I am just wondering, when the basic fundamentals for housing actually start applying in Southern California, what will homes be worth? I know, I know, whatever someone is willing to pay, but it used to be the banks were pretty picky about who they loaned to, the underlying value of the property, blah,blah. You know,the old fashioned crap that went out of style when the smart people started running things.

[HappyHouseHunting]

Inflation does account for some increase sometimes, but not always. I certainly do not expect homes to go back to say, 1960s home prices. My parents bought their small home in 1963 for $19,000 and in Southern California, that is not going to happen again. (There are parts of the country where that is true though.)

Homes can most definitely depreciate though. Using a generic inflation calculator online shows a value of $437,000 (approximately for this home).

I am just wondering, when the basic fundamentals for housing actually start applying in Southern California, what will homes be worth? I know, I know, whatever someone is willing to pay, but it used to be the banks were pretty picky about who they loaned to, the underlying value of the property, blah,blah. You know,the old fashioned crap that went out of style when the smart people started running things.

[HappyHouseHunting]

Inflation does account for some increase sometimes, but not always. I certainly do not expect homes to go back to say, 1960s home prices. My parents bought their small home in 1963 for $19,000 and in Southern California, that is not going to happen again. (There are parts of the country where that is true though.)

Homes can most definitely depreciate though. Using a generic inflation calculator online shows a value of $437,000 (approximately for this home).

I am just wondering, when the basic fundamentals for housing actually start applying in Southern California, what will homes be worth? I know, I know, whatever someone is willing to pay, but it used to be the banks were pretty picky about who they loaned to, the underlying value of the property, blah,blah. You know,the old fashioned crap that went out of style when the smart people started running things.

[HappyHouseHunting]

Inflation does account for some increase sometimes, but not always. I certainly do not expect homes to go back to say, 1960s home prices. My parents bought their small home in 1963 for $19,000 and in Southern California, that is not going to happen again. (There are parts of the country where that is true though.)

Homes can most definitely depreciate though. Using a generic inflation calculator online shows a value of $437,000 (approximately for this home).

I am just wondering, when the basic fundamentals for housing actually start applying in Southern California, what will homes be worth? I know, I know, whatever someone is willing to pay, but it used to be the banks were pretty picky about who they loaned to, the underlying value of the property, blah,blah. You know,the old fashioned crap that went out of style when the smart people started running things.

[HappyHouseHunting]

Inflation does account for some increase sometimes, but not always. I certainly do not expect homes to go back to say, 1960s home prices. My parents bought their small home in 1963 for $19,000 and in Southern California, that is not going to happen again. (There are parts of the country where that is true though.)

Homes can most definitely depreciate though. Using a generic inflation calculator online shows a value of $437,000 (approximately for this home).

I am just wondering, when the basic fundamentals for housing actually start applying in Southern California, what will homes be worth? I know, I know, whatever someone is willing to pay, but it used to be the banks were pretty picky about who they loaned to, the underlying value of the property, blah,blah. You know,the old fashioned crap that went out of style when the smart people started running things.

[Happs]

Do you all think this area appreciated heavily in the last few years because of its location by the beach and the fact that there are very few condos right on the beach either in Del Mar, Solana Beach or Encinitas? Maybe the seller thinks that because there are no more apartments being built at the beach, that he/she can command a high price. I can understand how Mira Mesa or other inland communities had run ups in prices due to the common man frenzy and subprime loans etc, but it’s interesting in an upscale area like this what transpired.

[Happs]

Do you all think this area appreciated heavily in the last few years because of its location by the beach and the fact that there are very few condos right on the beach either in Del Mar, Solana Beach or Encinitas? Maybe the seller thinks that because there are no more apartments being built at the beach, that he/she can command a high price. I can understand how Mira Mesa or other inland communities had run ups in prices due to the common man frenzy and subprime loans etc, but it’s interesting in an upscale area like this what transpired.

[Happs]

Do you all think this area appreciated heavily in the last few years because of its location by the beach and the fact that there are very few condos right on the beach either in Del Mar, Solana Beach or Encinitas? Maybe the seller thinks that because there are no more apartments being built at the beach, that he/she can command a high price. I can understand how Mira Mesa or other inland communities had run ups in prices due to the common man frenzy and subprime loans etc, but it’s interesting in an upscale area like this what transpired.

[Happs]

Do you all think this area appreciated heavily in the last few years because of its location by the beach and the fact that there are very few condos right on the beach either in Del Mar, Solana Beach or Encinitas? Maybe the seller thinks that because there are no more apartments being built at the beach, that he/she can command a high price. I can understand how Mira Mesa or other inland communities had run ups in prices due to the common man frenzy and subprime loans etc, but it’s interesting in an upscale area like this what transpired.

[Happs]

Do you all think this area appreciated heavily in the last few years because of its location by the beach and the fact that there are very few condos right on the beach either in Del Mar, Solana Beach or Encinitas? Maybe the seller thinks that because there are no more apartments being built at the beach, that he/she can command a high price. I can understand how Mira Mesa or other inland communities had run ups in prices due to the common man frenzy and subprime loans etc, but it’s interesting in an upscale area like this what transpired.

[I would rather be lucky then smart]

Someone please let me know

when a unit like that can be purchased at the “anti-bubble” price of the high $400K’s:

a: never
b: dream on
c: in 200??

[I would rather be lucky then smart]

Someone please let me know

when a unit like that can be purchased at the “anti-bubble” price of the high $400K’s:

a: never
b: dream on
c: in 200??

[I would rather be lucky then smart]

Someone please let me know

when a unit like that can be purchased at the “anti-bubble” price of the high $400K’s:

a: never
b: dream on
c: in 200??

[I would rather be lucky then smart]

Someone please let me know

when a unit like that can be purchased at the “anti-bubble” price of the high $400K’s:

a: never
b: dream on
c: in 200??

[Author]

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