Why is San Diego real estate still so expensive?

[jstoesz]

Caveat…I did not read all the posts, its a sunday, and because now I actually work and cannot post all I want.

Move away!

Maybe the shine has not yet warn off, but Northern california certainly has greener grass!

You can make half as much and have twice the standard of living with more content people around you to boot!

The half as much is a myth by the way, because a comparable job in sacramento is making more than san diego at least from my limited data point.

The housing market down their is screwed, and without 1 in 2 mortgage owners declaring bancruptcy (which they should given their DTI) the market will not realize gravity, or at least not for another 10 years. Sun and clement weather has a way of denying gravity.

So move away or constantly be pissed at living responsibly…people do live cheaper in other states and markets. Or maybe I just moved to a place with fewer smart people, either way, I don’t care. Because everything feels better up here.

I may have a less of a poke the bear response to follow. But that is just my initial impression from my first week in sacramento.

[an]

[quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?

[an]

[quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?

[an]

[quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?

[an]

[quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?

[an]

[quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?

[CA renter]

[quote=AN][quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?[/quote]

IMHO, the notion that SD and LA pay are about equal would probably only apply to a few industries. Having grown up in LA, the biggest surprise when I moved to SD was the MUCH lower pay, and everyone else I know who made the same move (outside of tech) experienced the same shock when they moved down here. SD pay sucks for those outside of tech or biotech. LA has much better prospects for people in most other industries, IMHO.

[CA renter]

[quote=AN][quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?[/quote]

IMHO, the notion that SD and LA pay are about equal would probably only apply to a few industries. Having grown up in LA, the biggest surprise when I moved to SD was the MUCH lower pay, and everyone else I know who made the same move (outside of tech) experienced the same shock when they moved down here. SD pay sucks for those outside of tech or biotech. LA has much better prospects for people in most other industries, IMHO.

[CA renter]

[quote=AN][quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?[/quote]

IMHO, the notion that SD and LA pay are about equal would probably only apply to a few industries. Having grown up in LA, the biggest surprise when I moved to SD was the MUCH lower pay, and everyone else I know who made the same move (outside of tech) experienced the same shock when they moved down here. SD pay sucks for those outside of tech or biotech. LA has much better prospects for people in most other industries, IMHO.

[CA renter]

[quote=AN][quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?[/quote]

IMHO, the notion that SD and LA pay are about equal would probably only apply to a few industries. Having grown up in LA, the biggest surprise when I moved to SD was the MUCH lower pay, and everyone else I know who made the same move (outside of tech) experienced the same shock when they moved down here. SD pay sucks for those outside of tech or biotech. LA has much better prospects for people in most other industries, IMHO.

[CA renter]

[quote=AN][quote=cjdairym]While SD is somewhat expensive, housing is still relatively cheaper than in LA and SF/Silicon Valley. Combined with the low rates, $800k home isn’t too bad with monthly payments for a couple with $200k or > income.

The only question is the downpayment which apparently there are enough people who have 20% or more. (ie, move-up, retirees, asians, etc)

Having said that, I believe the current market is pretty expensive for new homebuyers, younger couples. Home prices are still high which means many of them don’t have 20% for a downpayment. Either they go FHA or get money from family.[/quote]
I totally agree with this. LA/OC pay is comparable to SD and bay area pay is only ~20-25% higher. Yet their housing is much much more expensive than our.

As SD R said, the supply is limited and there are enough people with money to support those prices. Add in prop 13 and your supply of older homes get that much more limited. Put yourself in the shoes of people who bought their house in the mid 90s, would you sell at the price you want to pay right now?[/quote]

IMHO, the notion that SD and LA pay are about equal would probably only apply to a few industries. Having grown up in LA, the biggest surprise when I moved to SD was the MUCH lower pay, and everyone else I know who made the same move (outside of tech) experienced the same shock when they moved down here. SD pay sucks for those outside of tech or biotech. LA has much better prospects for people in most other industries, IMHO.

[CA renter]

[quote=jstoesz]Caveat…I did not read all the posts, its a sunday, and because now I actually work and cannot post all I want.

Move away!

Maybe the shine has not yet warn off, but Northern california certainly has greener grass!

You can make half as much and have twice the standard of living with more content people around you to boot!

The half as much is a myth by the way, because a comparable job in sacramento is making more than san diego at least from my limited data point.

The housing market down their is screwed, and without 1 in 2 mortgage owners declaring bancruptcy (which they should given their DTI) the market will not realize gravity, or at least not for another 10 years. Sun and clement weather has a way of denying gravity.

So move away or constantly be pissed at living responsibly…people do live cheaper in other states and markets. Or maybe I just moved to a place with fewer smart people, either way, I don’t care. Because everything feels better up here.

I may have a less of a poke the bear response to follow. But that is just my initial impression from my first week in sacramento.[/quote]

Glad to hear you’re already getting settled into your new home in Sacramento. 🙂

Hope you are doing well, and that you enjoy all the benefits of cheaper housing and a better lifestyle. You probably already know this, but I’ve heard they have some fantastic bike paths up there that run along the river, etc. Sounds awesome!

Let us know how things go as you get more acquainted with things.

[CA renter]

[quote=jstoesz]Caveat…I did not read all the posts, its a sunday, and because now I actually work and cannot post all I want.

Move away!

Maybe the shine has not yet warn off, but Northern california certainly has greener grass!

You can make half as much and have twice the standard of living with more content people around you to boot!

The half as much is a myth by the way, because a comparable job in sacramento is making more than san diego at least from my limited data point.

The housing market down their is screwed, and without 1 in 2 mortgage owners declaring bancruptcy (which they should given their DTI) the market will not realize gravity, or at least not for another 10 years. Sun and clement weather has a way of denying gravity.

So move away or constantly be pissed at living responsibly…people do live cheaper in other states and markets. Or maybe I just moved to a place with fewer smart people, either way, I don’t care. Because everything feels better up here.

I may have a less of a poke the bear response to follow. But that is just my initial impression from my first week in sacramento.[/quote]

Glad to hear you’re already getting settled into your new home in Sacramento. 🙂

Hope you are doing well, and that you enjoy all the benefits of cheaper housing and a better lifestyle. You probably already know this, but I’ve heard they have some fantastic bike paths up there that run along the river, etc. Sounds awesome!

Let us know how things go as you get more acquainted with things.

[CA renter]

[quote=jstoesz]Caveat…I did not read all the posts, its a sunday, and because now I actually work and cannot post all I want.

Move away!

Maybe the shine has not yet warn off, but Northern california certainly has greener grass!

You can make half as much and have twice the standard of living with more content people around you to boot!

The half as much is a myth by the way, because a comparable job in sacramento is making more than san diego at least from my limited data point.

The housing market down their is screwed, and without 1 in 2 mortgage owners declaring bancruptcy (which they should given their DTI) the market will not realize gravity, or at least not for another 10 years. Sun and clement weather has a way of denying gravity.

So move away or constantly be pissed at living responsibly…people do live cheaper in other states and markets. Or maybe I just moved to a place with fewer smart people, either way, I don’t care. Because everything feels better up here.

I may have a less of a poke the bear response to follow. But that is just my initial impression from my first week in sacramento.[/quote]

Glad to hear you’re already getting settled into your new home in Sacramento. 🙂

Hope you are doing well, and that you enjoy all the benefits of cheaper housing and a better lifestyle. You probably already know this, but I’ve heard they have some fantastic bike paths up there that run along the river, etc. Sounds awesome!

Let us know how things go as you get more acquainted with things.

[CA renter]

[quote=jstoesz]Caveat…I did not read all the posts, its a sunday, and because now I actually work and cannot post all I want.

Move away!

Maybe the shine has not yet warn off, but Northern california certainly has greener grass!

You can make half as much and have twice the standard of living with more content people around you to boot!

The half as much is a myth by the way, because a comparable job in sacramento is making more than san diego at least from my limited data point.

The housing market down their is screwed, and without 1 in 2 mortgage owners declaring bancruptcy (which they should given their DTI) the market will not realize gravity, or at least not for another 10 years. Sun and clement weather has a way of denying gravity.

So move away or constantly be pissed at living responsibly…people do live cheaper in other states and markets. Or maybe I just moved to a place with fewer smart people, either way, I don’t care. Because everything feels better up here.

I may have a less of a poke the bear response to follow. But that is just my initial impression from my first week in sacramento.[/quote]

Glad to hear you’re already getting settled into your new home in Sacramento. 🙂

Hope you are doing well, and that you enjoy all the benefits of cheaper housing and a better lifestyle. You probably already know this, but I’ve heard they have some fantastic bike paths up there that run along the river, etc. Sounds awesome!

Let us know how things go as you get more acquainted with things.

[Author]

Posts