Upper MId to Lower High End Market in NCC

[CA renter]

[quote=sdrealtor]CAR
You need to take off less stable jobs glasses because the buyers of most of the homes we are talking about are not paycheck employees but rather doctors, lawyers, cpas, stockbrokers, business owners, consultants and other self employeed folks. They arent affected by less stable DB plans and always paid for their own healthcare or still get it for next to nothing.[/quote]

sdr,

Trust me, we know plenty of doctors, lawyers, drug researchers, hedge fund managers, business owners, consultants, people in the entertainment industry (we were both born in L.A., and lived in the neighborhoods where many of them lived — we grew up with many of them or their kids), etc. Not a single one of them would say that they feel more financially comfortable today than ten or twenty years ago. I’ve mentioned it before, but the entertainment industry in So Cal is dying, and has been for many years. The music industry is a tiny fraction of what it was twenty years ago, and the movie industry is following close behind. Hedge fundies are worried about upcoming tax changes, and law firms have been laying people off (and pay has been going down in a number of specialties). NOBODY is immune from the current economic climate.

More to the point, while some people will always do better than others, it is the aggregate that matters most. In order to sustain high housnig prices over time, you need a critical mass of people who are willing to pay significantly more than the majority of local residents.

While you might be a realtor, it doesn’t mean that buyers and sellers (or any other non-realtors) are ignorant about the market. I was following California real estate long before you moved here. My parents were in the RE industry, and worked as brokers, property managers (commercial and residential), and investors. My DH’s family was in commercial construction (both his mom and dad). This isn’t new or unknown territory to us.

[ocrenter]

2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.

Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.

Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.

In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.

essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.

[ocrenter]

2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.

Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.

Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.

In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.

essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.

[ocrenter]

2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.

Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.

Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.

In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.

essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.

[ocrenter]

2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.

Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.

Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.

In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.

essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.

[ocrenter]

2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.

Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.

Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.

In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.

essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.

[Anonymous]

CAR, don’t try to argue economics with sdr as he has clearly been touched by greatness. Just keep in mind he grew up in a neighborhood where 1 out of 8 students went to Ivy league schools! Nearly everyone of his neighbors are doctors, CEOs and nobel prize winners. How could he possibly understand that not all SD residents are wealthy and successful because in his world everybody is.

That clearly explains why high end properties haven’t corrected and never will, there is an endless supply of new wealth. The secret is out now. Unlike 10 or 20 years ago, when San Diego was a sleepy military town with bad weather and polluted ocean water, everything is differnt now. Today, thanks to the improvements to the weather, beaches, expanded downtown bar scene and endless supply of new cookie cutter tract homes, EVERYBODY wants to live here.

Why didn’t I see this before? The secret is out!

[Anonymous]

CAR, don’t try to argue economics with sdr as he has clearly been touched by greatness. Just keep in mind he grew up in a neighborhood where 1 out of 8 students went to Ivy league schools! Nearly everyone of his neighbors are doctors, CEOs and nobel prize winners. How could he possibly understand that not all SD residents are wealthy and successful because in his world everybody is.

That clearly explains why high end properties haven’t corrected and never will, there is an endless supply of new wealth. The secret is out now. Unlike 10 or 20 years ago, when San Diego was a sleepy military town with bad weather and polluted ocean water, everything is differnt now. Today, thanks to the improvements to the weather, beaches, expanded downtown bar scene and endless supply of new cookie cutter tract homes, EVERYBODY wants to live here.

Why didn’t I see this before? The secret is out!

[Anonymous]

CAR, don’t try to argue economics with sdr as he has clearly been touched by greatness. Just keep in mind he grew up in a neighborhood where 1 out of 8 students went to Ivy league schools! Nearly everyone of his neighbors are doctors, CEOs and nobel prize winners. How could he possibly understand that not all SD residents are wealthy and successful because in his world everybody is.

That clearly explains why high end properties haven’t corrected and never will, there is an endless supply of new wealth. The secret is out now. Unlike 10 or 20 years ago, when San Diego was a sleepy military town with bad weather and polluted ocean water, everything is differnt now. Today, thanks to the improvements to the weather, beaches, expanded downtown bar scene and endless supply of new cookie cutter tract homes, EVERYBODY wants to live here.

Why didn’t I see this before? The secret is out!

[Anonymous]

CAR, don’t try to argue economics with sdr as he has clearly been touched by greatness. Just keep in mind he grew up in a neighborhood where 1 out of 8 students went to Ivy league schools! Nearly everyone of his neighbors are doctors, CEOs and nobel prize winners. How could he possibly understand that not all SD residents are wealthy and successful because in his world everybody is.

That clearly explains why high end properties haven’t corrected and never will, there is an endless supply of new wealth. The secret is out now. Unlike 10 or 20 years ago, when San Diego was a sleepy military town with bad weather and polluted ocean water, everything is differnt now. Today, thanks to the improvements to the weather, beaches, expanded downtown bar scene and endless supply of new cookie cutter tract homes, EVERYBODY wants to live here.

Why didn’t I see this before? The secret is out!

[Anonymous]

CAR, don’t try to argue economics with sdr as he has clearly been touched by greatness. Just keep in mind he grew up in a neighborhood where 1 out of 8 students went to Ivy league schools! Nearly everyone of his neighbors are doctors, CEOs and nobel prize winners. How could he possibly understand that not all SD residents are wealthy and successful because in his world everybody is.

That clearly explains why high end properties haven’t corrected and never will, there is an endless supply of new wealth. The secret is out now. Unlike 10 or 20 years ago, when San Diego was a sleepy military town with bad weather and polluted ocean water, everything is differnt now. Today, thanks to the improvements to the weather, beaches, expanded downtown bar scene and endless supply of new cookie cutter tract homes, EVERYBODY wants to live here.

Why didn’t I see this before? The secret is out!

[Anonymous]

In 2000 interest rates were more like 6%. Also, there is a huge risk in price depreciation buying today at 800K.

Other than those nitpicks this is a good example of a house (I assume it is not a dump) that is easily affordable for upper/middle class. Unfortunately there are few if any example like this in SD (not NC) coastal.

[Anonymous]

In 2000 interest rates were more like 6%. Also, there is a huge risk in price depreciation buying today at 800K.

Other than those nitpicks this is a good example of a house (I assume it is not a dump) that is easily affordable for upper/middle class. Unfortunately there are few if any example like this in SD (not NC) coastal.

[Anonymous]

In 2000 interest rates were more like 6%. Also, there is a huge risk in price depreciation buying today at 800K.

Other than those nitpicks this is a good example of a house (I assume it is not a dump) that is easily affordable for upper/middle class. Unfortunately there are few if any example like this in SD (not NC) coastal.

[Anonymous]

In 2000 interest rates were more like 6%. Also, there is a huge risk in price depreciation buying today at 800K.

Other than those nitpicks this is a good example of a house (I assume it is not a dump) that is easily affordable for upper/middle class. Unfortunately there are few if any example like this in SD (not NC) coastal.

[Author]

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