Upper MId to Lower High End Market in NCC

[Anonymous]

sdr, what evidence do you have that there are more high net worth individuals in SD than 15 years ago? All of your examples are anecdotal. In fact, every example you give could have easily applied to the 1970s, 80s, etc.

Coastal SD got hammered in the 1990s, everyone who believes it can’t happen again have their heads in the sand.

[sdrealtor]

The examples are all around us everywhere you look. Here’s a data point for you.

SD County population in 1995 2.6M.

SD County population in 2010 3.1M.

Do you beleive the additional 500,000 people are all poor?

Something from the census

Median Household income in 1989 was $35,000
Median Household income in 1999 was $47,000
Median Household income in 2008 was $62,000

You would have to be blind or at least have your eyes closed not to see how much this area has changed over the last 15 years.

Yes it got hammered in the 1990’s and alot of people you ask will say it has gotten hammered again. On a nominal basis the declines are far greater this time around. Granted homes were lower priced then but homes in nice middle class neighborhoods did not fall $200 to 300K in the 90’s like they have now.

[sdrealtor]

The examples are all around us everywhere you look. Here’s a data point for you.

SD County population in 1995 2.6M.

SD County population in 2010 3.1M.

Do you beleive the additional 500,000 people are all poor?

Something from the census

Median Household income in 1989 was $35,000
Median Household income in 1999 was $47,000
Median Household income in 2008 was $62,000

You would have to be blind or at least have your eyes closed not to see how much this area has changed over the last 15 years.

Yes it got hammered in the 1990’s and alot of people you ask will say it has gotten hammered again. On a nominal basis the declines are far greater this time around. Granted homes were lower priced then but homes in nice middle class neighborhoods did not fall $200 to 300K in the 90’s like they have now.

[sdrealtor]

The examples are all around us everywhere you look. Here’s a data point for you.

SD County population in 1995 2.6M.

SD County population in 2010 3.1M.

Do you beleive the additional 500,000 people are all poor?

Something from the census

Median Household income in 1989 was $35,000
Median Household income in 1999 was $47,000
Median Household income in 2008 was $62,000

You would have to be blind or at least have your eyes closed not to see how much this area has changed over the last 15 years.

Yes it got hammered in the 1990’s and alot of people you ask will say it has gotten hammered again. On a nominal basis the declines are far greater this time around. Granted homes were lower priced then but homes in nice middle class neighborhoods did not fall $200 to 300K in the 90’s like they have now.

[sdrealtor]

The examples are all around us everywhere you look. Here’s a data point for you.

SD County population in 1995 2.6M.

SD County population in 2010 3.1M.

Do you beleive the additional 500,000 people are all poor?

Something from the census

Median Household income in 1989 was $35,000
Median Household income in 1999 was $47,000
Median Household income in 2008 was $62,000

You would have to be blind or at least have your eyes closed not to see how much this area has changed over the last 15 years.

Yes it got hammered in the 1990’s and alot of people you ask will say it has gotten hammered again. On a nominal basis the declines are far greater this time around. Granted homes were lower priced then but homes in nice middle class neighborhoods did not fall $200 to 300K in the 90’s like they have now.

[sdrealtor]

The examples are all around us everywhere you look. Here’s a data point for you.

SD County population in 1995 2.6M.

SD County population in 2010 3.1M.

Do you beleive the additional 500,000 people are all poor?

Something from the census

Median Household income in 1989 was $35,000
Median Household income in 1999 was $47,000
Median Household income in 2008 was $62,000

You would have to be blind or at least have your eyes closed not to see how much this area has changed over the last 15 years.

Yes it got hammered in the 1990’s and alot of people you ask will say it has gotten hammered again. On a nominal basis the declines are far greater this time around. Granted homes were lower priced then but homes in nice middle class neighborhoods did not fall $200 to 300K in the 90’s like they have now.

[sdrealtor]

And dont give me the argument that while incomes have doubled house prices have gone up much more. My older sister owned a fabulous 2800 sq ft 1 story home on a 1/2 acre lot with a pool on cul de sac in great neighborhood. A professional golfer (Mark O’Meara) who has won many tournaments lived across the street and a cardiologist lived next door.

They paid $385,000 in 1988. Last month a model match completely updated (I.e. 50K klitchen remodel etc.) with a similar lot/location sold for $725,000. Very much in line with the change in median income.

I think it may time to look in the mirror and ask whose head is really in the sand?

[sdrealtor]

And dont give me the argument that while incomes have doubled house prices have gone up much more. My older sister owned a fabulous 2800 sq ft 1 story home on a 1/2 acre lot with a pool on cul de sac in great neighborhood. A professional golfer (Mark O’Meara) who has won many tournaments lived across the street and a cardiologist lived next door.

They paid $385,000 in 1988. Last month a model match completely updated (I.e. 50K klitchen remodel etc.) with a similar lot/location sold for $725,000. Very much in line with the change in median income.

I think it may time to look in the mirror and ask whose head is really in the sand?

[sdrealtor]

And dont give me the argument that while incomes have doubled house prices have gone up much more. My older sister owned a fabulous 2800 sq ft 1 story home on a 1/2 acre lot with a pool on cul de sac in great neighborhood. A professional golfer (Mark O’Meara) who has won many tournaments lived across the street and a cardiologist lived next door.

They paid $385,000 in 1988. Last month a model match completely updated (I.e. 50K klitchen remodel etc.) with a similar lot/location sold for $725,000. Very much in line with the change in median income.

I think it may time to look in the mirror and ask whose head is really in the sand?

[sdrealtor]

And dont give me the argument that while incomes have doubled house prices have gone up much more. My older sister owned a fabulous 2800 sq ft 1 story home on a 1/2 acre lot with a pool on cul de sac in great neighborhood. A professional golfer (Mark O’Meara) who has won many tournaments lived across the street and a cardiologist lived next door.

They paid $385,000 in 1988. Last month a model match completely updated (I.e. 50K klitchen remodel etc.) with a similar lot/location sold for $725,000. Very much in line with the change in median income.

I think it may time to look in the mirror and ask whose head is really in the sand?

[sdrealtor]

And dont give me the argument that while incomes have doubled house prices have gone up much more. My older sister owned a fabulous 2800 sq ft 1 story home on a 1/2 acre lot with a pool on cul de sac in great neighborhood. A professional golfer (Mark O’Meara) who has won many tournaments lived across the street and a cardiologist lived next door.

They paid $385,000 in 1988. Last month a model match completely updated (I.e. 50K klitchen remodel etc.) with a similar lot/location sold for $725,000. Very much in line with the change in median income.

I think it may time to look in the mirror and ask whose head is really in the sand?

[Anonymous]

Prices in coastal SD have definitely outpaced inflation and income by a wide margin. Not even close.

sdr, based on your statistics, there was virtually no real income apprecation from 1999-2008 (assuming 3% average inflation).

We’ll see in the next 2-3 years how well coastal RE really holds up. We still have two more years of major ARM resets, meanwhile government housing subsidies are starting to wane. Let’s see how this plays out.

I say coastal prices will tank because there is not enough organic demand in the long run (i.e. legitimate income) combined with rising unemployment and potentially higher interest rates (can’t go much lower). Plus, in every previous SD real estate recession coastal RE got hammered. Just don’t buy the “this time its different argument” that is a stretch that is not based on fact, just on anecdotes and feeling.

[Anonymous]

Prices in coastal SD have definitely outpaced inflation and income by a wide margin. Not even close.

sdr, based on your statistics, there was virtually no real income apprecation from 1999-2008 (assuming 3% average inflation).

We’ll see in the next 2-3 years how well coastal RE really holds up. We still have two more years of major ARM resets, meanwhile government housing subsidies are starting to wane. Let’s see how this plays out.

I say coastal prices will tank because there is not enough organic demand in the long run (i.e. legitimate income) combined with rising unemployment and potentially higher interest rates (can’t go much lower). Plus, in every previous SD real estate recession coastal RE got hammered. Just don’t buy the “this time its different argument” that is a stretch that is not based on fact, just on anecdotes and feeling.

[Anonymous]

Prices in coastal SD have definitely outpaced inflation and income by a wide margin. Not even close.

sdr, based on your statistics, there was virtually no real income apprecation from 1999-2008 (assuming 3% average inflation).

We’ll see in the next 2-3 years how well coastal RE really holds up. We still have two more years of major ARM resets, meanwhile government housing subsidies are starting to wane. Let’s see how this plays out.

I say coastal prices will tank because there is not enough organic demand in the long run (i.e. legitimate income) combined with rising unemployment and potentially higher interest rates (can’t go much lower). Plus, in every previous SD real estate recession coastal RE got hammered. Just don’t buy the “this time its different argument” that is a stretch that is not based on fact, just on anecdotes and feeling.

[Anonymous]

Prices in coastal SD have definitely outpaced inflation and income by a wide margin. Not even close.

sdr, based on your statistics, there was virtually no real income apprecation from 1999-2008 (assuming 3% average inflation).

We’ll see in the next 2-3 years how well coastal RE really holds up. We still have two more years of major ARM resets, meanwhile government housing subsidies are starting to wane. Let’s see how this plays out.

I say coastal prices will tank because there is not enough organic demand in the long run (i.e. legitimate income) combined with rising unemployment and potentially higher interest rates (can’t go much lower). Plus, in every previous SD real estate recession coastal RE got hammered. Just don’t buy the “this time its different argument” that is a stretch that is not based on fact, just on anecdotes and feeling.

[Author]

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