Why is San Diego real estate still so expensive?

[HomeShopping]

“If you’re making 200k, you’re in the top 5% of earners for any of those areas. That means you should be able to afford the top 5% of homes.”

Permabear, the fallacy of your argument has been exposed. Consider Rancho Santa Fe: average income – $245,631, median home sale price – $2,585,000.

You have neglected to consider the segment of buyers that have substantial downpayments. While the absolute numbers are small, these buyers form a significant percentage of the buyers of homes $1 million and up.

http://en.wikipedia.org/wiki/Rancho_Santa_Fe,_California

[permabear]

I agree with both of you in high-end neighborhoods like La Jolla, Del Mar, RSF, CV, etc. Yes, there are lots of all-cash buyers, people living off investments, and so forth.

But it’s not quite the same in working-stiff neighborhoods like RB (non-Santaluz), Scripps Ranch, PQ, etc.

I’m not surprised there are $1.4M homes for sale in Muirlands – on a bluff, with whitewater ocean views. I remain skeptical that $1.4M for a 4000 sq ft tract home in 4S or Scripps is sustainable. The fact that many have been sitting on the market for close to a year adds to my doubts.

As always, real estate is hyper-local, we can all agree on that at least.

[permabear]

I agree with both of you in high-end neighborhoods like La Jolla, Del Mar, RSF, CV, etc. Yes, there are lots of all-cash buyers, people living off investments, and so forth.

But it’s not quite the same in working-stiff neighborhoods like RB (non-Santaluz), Scripps Ranch, PQ, etc.

I’m not surprised there are $1.4M homes for sale in Muirlands – on a bluff, with whitewater ocean views. I remain skeptical that $1.4M for a 4000 sq ft tract home in 4S or Scripps is sustainable. The fact that many have been sitting on the market for close to a year adds to my doubts.

As always, real estate is hyper-local, we can all agree on that at least.

[permabear]

I agree with both of you in high-end neighborhoods like La Jolla, Del Mar, RSF, CV, etc. Yes, there are lots of all-cash buyers, people living off investments, and so forth.

But it’s not quite the same in working-stiff neighborhoods like RB (non-Santaluz), Scripps Ranch, PQ, etc.

I’m not surprised there are $1.4M homes for sale in Muirlands – on a bluff, with whitewater ocean views. I remain skeptical that $1.4M for a 4000 sq ft tract home in 4S or Scripps is sustainable. The fact that many have been sitting on the market for close to a year adds to my doubts.

As always, real estate is hyper-local, we can all agree on that at least.

[permabear]

I agree with both of you in high-end neighborhoods like La Jolla, Del Mar, RSF, CV, etc. Yes, there are lots of all-cash buyers, people living off investments, and so forth.

But it’s not quite the same in working-stiff neighborhoods like RB (non-Santaluz), Scripps Ranch, PQ, etc.

I’m not surprised there are $1.4M homes for sale in Muirlands – on a bluff, with whitewater ocean views. I remain skeptical that $1.4M for a 4000 sq ft tract home in 4S or Scripps is sustainable. The fact that many have been sitting on the market for close to a year adds to my doubts.

As always, real estate is hyper-local, we can all agree on that at least.

[permabear]

I agree with both of you in high-end neighborhoods like La Jolla, Del Mar, RSF, CV, etc. Yes, there are lots of all-cash buyers, people living off investments, and so forth.

But it’s not quite the same in working-stiff neighborhoods like RB (non-Santaluz), Scripps Ranch, PQ, etc.

I’m not surprised there are $1.4M homes for sale in Muirlands – on a bluff, with whitewater ocean views. I remain skeptical that $1.4M for a 4000 sq ft tract home in 4S or Scripps is sustainable. The fact that many have been sitting on the market for close to a year adds to my doubts.

As always, real estate is hyper-local, we can all agree on that at least.

[sdrealtor]

But you dont need to spend 1.4M in SR for a 4,000 sq ft home. There are 5,000 sq ft homes on roughly half acre lots around $1M in Stonebridge. If they cant find, call me and I will.

[sdrealtor]

But you dont need to spend 1.4M in SR for a 4,000 sq ft home. There are 5,000 sq ft homes on roughly half acre lots around $1M in Stonebridge. If they cant find, call me and I will.

[sdrealtor]

But you dont need to spend 1.4M in SR for a 4,000 sq ft home. There are 5,000 sq ft homes on roughly half acre lots around $1M in Stonebridge. If they cant find, call me and I will.

[sdrealtor]

But you dont need to spend 1.4M in SR for a 4,000 sq ft home. There are 5,000 sq ft homes on roughly half acre lots around $1M in Stonebridge. If they cant find, call me and I will.

[sdrealtor]

But you dont need to spend 1.4M in SR for a 4,000 sq ft home. There are 5,000 sq ft homes on roughly half acre lots around $1M in Stonebridge. If they cant find, call me and I will.

[an]

Again permabear, what’s your definition of small? Now that you specified the desired zip code, I’m even more skeptical as to your statement of not able to find good big houses for 800k-1M. My definitely of big = 3000+ sq-ft. Here are some examples:

Stonebridge:
http://www.sdlookup.com/MLS-100056104-11558_Carowind_Ct_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100060663-11613_Sweet_Willow_Way_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100051901-14661_Old_Creek_Dr_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100066812-11602_Sweet_Willow_Way_San_Diego_CA_92131

South Pomorado in SR:
http://www.sdlookup.com/MLS-100061046-12280_Semillon_Blvd_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100064371-12255_Spruce_Grove_Pl_San_Diego_CA_92131

92127 doesn’t really have a lot of houses in the 800k-1M range. There are plenty <$800k and plenty > $1M. Are you expecting those $1.4M houses now to drop to $1M? If you are, then that would put these houses at around 2000 nominal prices. Example would be http://www.sdlookup.com/MLS-100068741-16979_Going_My_Way_San_Diego_CA_92127 sold at $1.24M in late 2003 new (assuming price does not include landscaping).

92129 doesn’t really have a lot of houses > $800k. There are some pockets of large houses going for $800k+ but that’s a small portion of 92129.

92064:
http://www.sdlookup.com/MLS-100064351-16224_Orchard_Bend_Rd_Poway_CA_92064 (This property came up before, now listing for $899k for 5800 sq-ft on 1.5 acre). Are you expecting this type of property in 92129/92127/92131?
http://www.sdlookup.com/MLS-100051015-15535_Eastvale_Rd_Poway_CA_92064
http://www.sdlookup.com/MLS-100058553-12256_Berea_Ct_Poway_CA_92064

The bigger question is, how many people looking in the 800k-1M range are looking for 4000+ sq-ft houses? I personally rather get a 2000 sq-ft house in Delmar than 4000 sq-ft in SR. The supply for 4000+ sq-ft houses is not that big and majority of them are geared toward much higher end buyers than those making $200k and don’t have a lot of down payment. Maybe you have tastes of $1.5M+ houses but your budget is only $800k-$1M, that’s why you’re not seeing that many houses that fit the bill.

[an]

Again permabear, what’s your definition of small? Now that you specified the desired zip code, I’m even more skeptical as to your statement of not able to find good big houses for 800k-1M. My definitely of big = 3000+ sq-ft. Here are some examples:

Stonebridge:
http://www.sdlookup.com/MLS-100056104-11558_Carowind_Ct_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100060663-11613_Sweet_Willow_Way_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100051901-14661_Old_Creek_Dr_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100066812-11602_Sweet_Willow_Way_San_Diego_CA_92131

South Pomorado in SR:
http://www.sdlookup.com/MLS-100061046-12280_Semillon_Blvd_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100064371-12255_Spruce_Grove_Pl_San_Diego_CA_92131

92127 doesn’t really have a lot of houses in the 800k-1M range. There are plenty <$800k and plenty > $1M. Are you expecting those $1.4M houses now to drop to $1M? If you are, then that would put these houses at around 2000 nominal prices. Example would be http://www.sdlookup.com/MLS-100068741-16979_Going_My_Way_San_Diego_CA_92127 sold at $1.24M in late 2003 new (assuming price does not include landscaping).

92129 doesn’t really have a lot of houses > $800k. There are some pockets of large houses going for $800k+ but that’s a small portion of 92129.

92064:
http://www.sdlookup.com/MLS-100064351-16224_Orchard_Bend_Rd_Poway_CA_92064 (This property came up before, now listing for $899k for 5800 sq-ft on 1.5 acre). Are you expecting this type of property in 92129/92127/92131?
http://www.sdlookup.com/MLS-100051015-15535_Eastvale_Rd_Poway_CA_92064
http://www.sdlookup.com/MLS-100058553-12256_Berea_Ct_Poway_CA_92064

The bigger question is, how many people looking in the 800k-1M range are looking for 4000+ sq-ft houses? I personally rather get a 2000 sq-ft house in Delmar than 4000 sq-ft in SR. The supply for 4000+ sq-ft houses is not that big and majority of them are geared toward much higher end buyers than those making $200k and don’t have a lot of down payment. Maybe you have tastes of $1.5M+ houses but your budget is only $800k-$1M, that’s why you’re not seeing that many houses that fit the bill.

[an]

Again permabear, what’s your definition of small? Now that you specified the desired zip code, I’m even more skeptical as to your statement of not able to find good big houses for 800k-1M. My definitely of big = 3000+ sq-ft. Here are some examples:

Stonebridge:
http://www.sdlookup.com/MLS-100056104-11558_Carowind_Ct_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100060663-11613_Sweet_Willow_Way_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100051901-14661_Old_Creek_Dr_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100066812-11602_Sweet_Willow_Way_San_Diego_CA_92131

South Pomorado in SR:
http://www.sdlookup.com/MLS-100061046-12280_Semillon_Blvd_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100064371-12255_Spruce_Grove_Pl_San_Diego_CA_92131

92127 doesn’t really have a lot of houses in the 800k-1M range. There are plenty <$800k and plenty > $1M. Are you expecting those $1.4M houses now to drop to $1M? If you are, then that would put these houses at around 2000 nominal prices. Example would be http://www.sdlookup.com/MLS-100068741-16979_Going_My_Way_San_Diego_CA_92127 sold at $1.24M in late 2003 new (assuming price does not include landscaping).

92129 doesn’t really have a lot of houses > $800k. There are some pockets of large houses going for $800k+ but that’s a small portion of 92129.

92064:
http://www.sdlookup.com/MLS-100064351-16224_Orchard_Bend_Rd_Poway_CA_92064 (This property came up before, now listing for $899k for 5800 sq-ft on 1.5 acre). Are you expecting this type of property in 92129/92127/92131?
http://www.sdlookup.com/MLS-100051015-15535_Eastvale_Rd_Poway_CA_92064
http://www.sdlookup.com/MLS-100058553-12256_Berea_Ct_Poway_CA_92064

The bigger question is, how many people looking in the 800k-1M range are looking for 4000+ sq-ft houses? I personally rather get a 2000 sq-ft house in Delmar than 4000 sq-ft in SR. The supply for 4000+ sq-ft houses is not that big and majority of them are geared toward much higher end buyers than those making $200k and don’t have a lot of down payment. Maybe you have tastes of $1.5M+ houses but your budget is only $800k-$1M, that’s why you’re not seeing that many houses that fit the bill.

[an]

Again permabear, what’s your definition of small? Now that you specified the desired zip code, I’m even more skeptical as to your statement of not able to find good big houses for 800k-1M. My definitely of big = 3000+ sq-ft. Here are some examples:

Stonebridge:
http://www.sdlookup.com/MLS-100056104-11558_Carowind_Ct_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100060663-11613_Sweet_Willow_Way_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100051901-14661_Old_Creek_Dr_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100066812-11602_Sweet_Willow_Way_San_Diego_CA_92131

South Pomorado in SR:
http://www.sdlookup.com/MLS-100061046-12280_Semillon_Blvd_San_Diego_CA_92131
http://www.sdlookup.com/MLS-100064371-12255_Spruce_Grove_Pl_San_Diego_CA_92131

92127 doesn’t really have a lot of houses in the 800k-1M range. There are plenty <$800k and plenty > $1M. Are you expecting those $1.4M houses now to drop to $1M? If you are, then that would put these houses at around 2000 nominal prices. Example would be http://www.sdlookup.com/MLS-100068741-16979_Going_My_Way_San_Diego_CA_92127 sold at $1.24M in late 2003 new (assuming price does not include landscaping).

92129 doesn’t really have a lot of houses > $800k. There are some pockets of large houses going for $800k+ but that’s a small portion of 92129.

92064:
http://www.sdlookup.com/MLS-100064351-16224_Orchard_Bend_Rd_Poway_CA_92064 (This property came up before, now listing for $899k for 5800 sq-ft on 1.5 acre). Are you expecting this type of property in 92129/92127/92131?
http://www.sdlookup.com/MLS-100051015-15535_Eastvale_Rd_Poway_CA_92064
http://www.sdlookup.com/MLS-100058553-12256_Berea_Ct_Poway_CA_92064

The bigger question is, how many people looking in the 800k-1M range are looking for 4000+ sq-ft houses? I personally rather get a 2000 sq-ft house in Delmar than 4000 sq-ft in SR. The supply for 4000+ sq-ft houses is not that big and majority of them are geared toward much higher end buyers than those making $200k and don’t have a lot of down payment. Maybe you have tastes of $1.5M+ houses but your budget is only $800k-$1M, that’s why you’re not seeing that many houses that fit the bill.

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