Why is San Diego real estate still so expensive?

[sdrealtor]

permabear
You have injected 4 or 5 personal biases in your search that limit things. Our point is that there are great homes out there that meet the general description of what you outlined. They just dont meet your exact specifications. When you are very specific and want a creme of the crop prime property it gets tougher. With that said, its possible.

Someone I know is about to get a prime property that meets most of what you described at a year 2000 and possibly even a 1999 price. It is happening in a place I didnt think was possible but it seems that all the stars may have been aligned.

[SD Realtor]

Permabear I think it is a combo of many things. As Rich pointed out the deviation from the median now and the median in the 90’s is not to far off. One thing you can take solace in is that it is not as bad as say 2004.

I think also that the competition for the type of home you are looking for, in the neighborhood you want is extreme. Think about it…. The reality is that there are a handful of communities that ALOT of people are competing for. These are pretty much based on schools and locale. If you lump in that the home has to be less then 15 years old then it gets REALLY tough. The job growth of companies like Qualcomm and Broadcomm cannot be ignored either. In 1996 Broadcomm had a VERY small presence in San Diego. Now look at it down here. Need we discuss the growth of Qualcomm since 1996? These are but two examples. While the dot com bust was brutal there were a HELL of alot of people that made money off of it and plunked themselves into homes. There have been well positioned people from out of state, from out of the country who come/came to live here.

There will always be those who like to say this is all a mirage and realtorspeak but the facts have been this way for decades. I will bet any amount of money that San Diego real estate, especially what you want will always be above the median, sometimes way above it, sometimes not so way above it. The truth is you CAN buy a big beautiful home for alot cheaper but it will not be in those neighborhoods. Maybe you are farther east, maybe in Temecula.

The bottom line is that the white collar employment in San Diego on a percentage basis of the total working population, combined with the climate, combined with the military (ALOT of seasoned officers) combined with biotech/medical/UCSD, against a fairly constrained inventory with regards to housing age/school quality/physical locations will always put pressure on pricing. Radical moves in rates will help destablize it.

As sdr posted you can find some deals if you are patient and look hard enough. Or go get a hard money loan and purchase at trustee sale and then refi out in a few months and get a conventional loan.

[SD Realtor]

Permabear I think it is a combo of many things. As Rich pointed out the deviation from the median now and the median in the 90’s is not to far off. One thing you can take solace in is that it is not as bad as say 2004.

I think also that the competition for the type of home you are looking for, in the neighborhood you want is extreme. Think about it…. The reality is that there are a handful of communities that ALOT of people are competing for. These are pretty much based on schools and locale. If you lump in that the home has to be less then 15 years old then it gets REALLY tough. The job growth of companies like Qualcomm and Broadcomm cannot be ignored either. In 1996 Broadcomm had a VERY small presence in San Diego. Now look at it down here. Need we discuss the growth of Qualcomm since 1996? These are but two examples. While the dot com bust was brutal there were a HELL of alot of people that made money off of it and plunked themselves into homes. There have been well positioned people from out of state, from out of the country who come/came to live here.

There will always be those who like to say this is all a mirage and realtorspeak but the facts have been this way for decades. I will bet any amount of money that San Diego real estate, especially what you want will always be above the median, sometimes way above it, sometimes not so way above it. The truth is you CAN buy a big beautiful home for alot cheaper but it will not be in those neighborhoods. Maybe you are farther east, maybe in Temecula.

The bottom line is that the white collar employment in San Diego on a percentage basis of the total working population, combined with the climate, combined with the military (ALOT of seasoned officers) combined with biotech/medical/UCSD, against a fairly constrained inventory with regards to housing age/school quality/physical locations will always put pressure on pricing. Radical moves in rates will help destablize it.

As sdr posted you can find some deals if you are patient and look hard enough. Or go get a hard money loan and purchase at trustee sale and then refi out in a few months and get a conventional loan.

[SD Realtor]

Permabear I think it is a combo of many things. As Rich pointed out the deviation from the median now and the median in the 90’s is not to far off. One thing you can take solace in is that it is not as bad as say 2004.

I think also that the competition for the type of home you are looking for, in the neighborhood you want is extreme. Think about it…. The reality is that there are a handful of communities that ALOT of people are competing for. These are pretty much based on schools and locale. If you lump in that the home has to be less then 15 years old then it gets REALLY tough. The job growth of companies like Qualcomm and Broadcomm cannot be ignored either. In 1996 Broadcomm had a VERY small presence in San Diego. Now look at it down here. Need we discuss the growth of Qualcomm since 1996? These are but two examples. While the dot com bust was brutal there were a HELL of alot of people that made money off of it and plunked themselves into homes. There have been well positioned people from out of state, from out of the country who come/came to live here.

There will always be those who like to say this is all a mirage and realtorspeak but the facts have been this way for decades. I will bet any amount of money that San Diego real estate, especially what you want will always be above the median, sometimes way above it, sometimes not so way above it. The truth is you CAN buy a big beautiful home for alot cheaper but it will not be in those neighborhoods. Maybe you are farther east, maybe in Temecula.

The bottom line is that the white collar employment in San Diego on a percentage basis of the total working population, combined with the climate, combined with the military (ALOT of seasoned officers) combined with biotech/medical/UCSD, against a fairly constrained inventory with regards to housing age/school quality/physical locations will always put pressure on pricing. Radical moves in rates will help destablize it.

As sdr posted you can find some deals if you are patient and look hard enough. Or go get a hard money loan and purchase at trustee sale and then refi out in a few months and get a conventional loan.

[SD Realtor]

Permabear I think it is a combo of many things. As Rich pointed out the deviation from the median now and the median in the 90’s is not to far off. One thing you can take solace in is that it is not as bad as say 2004.

I think also that the competition for the type of home you are looking for, in the neighborhood you want is extreme. Think about it…. The reality is that there are a handful of communities that ALOT of people are competing for. These are pretty much based on schools and locale. If you lump in that the home has to be less then 15 years old then it gets REALLY tough. The job growth of companies like Qualcomm and Broadcomm cannot be ignored either. In 1996 Broadcomm had a VERY small presence in San Diego. Now look at it down here. Need we discuss the growth of Qualcomm since 1996? These are but two examples. While the dot com bust was brutal there were a HELL of alot of people that made money off of it and plunked themselves into homes. There have been well positioned people from out of state, from out of the country who come/came to live here.

There will always be those who like to say this is all a mirage and realtorspeak but the facts have been this way for decades. I will bet any amount of money that San Diego real estate, especially what you want will always be above the median, sometimes way above it, sometimes not so way above it. The truth is you CAN buy a big beautiful home for alot cheaper but it will not be in those neighborhoods. Maybe you are farther east, maybe in Temecula.

The bottom line is that the white collar employment in San Diego on a percentage basis of the total working population, combined with the climate, combined with the military (ALOT of seasoned officers) combined with biotech/medical/UCSD, against a fairly constrained inventory with regards to housing age/school quality/physical locations will always put pressure on pricing. Radical moves in rates will help destablize it.

As sdr posted you can find some deals if you are patient and look hard enough. Or go get a hard money loan and purchase at trustee sale and then refi out in a few months and get a conventional loan.

[SD Realtor]

Permabear I think it is a combo of many things. As Rich pointed out the deviation from the median now and the median in the 90’s is not to far off. One thing you can take solace in is that it is not as bad as say 2004.

I think also that the competition for the type of home you are looking for, in the neighborhood you want is extreme. Think about it…. The reality is that there are a handful of communities that ALOT of people are competing for. These are pretty much based on schools and locale. If you lump in that the home has to be less then 15 years old then it gets REALLY tough. The job growth of companies like Qualcomm and Broadcomm cannot be ignored either. In 1996 Broadcomm had a VERY small presence in San Diego. Now look at it down here. Need we discuss the growth of Qualcomm since 1996? These are but two examples. While the dot com bust was brutal there were a HELL of alot of people that made money off of it and plunked themselves into homes. There have been well positioned people from out of state, from out of the country who come/came to live here.

There will always be those who like to say this is all a mirage and realtorspeak but the facts have been this way for decades. I will bet any amount of money that San Diego real estate, especially what you want will always be above the median, sometimes way above it, sometimes not so way above it. The truth is you CAN buy a big beautiful home for alot cheaper but it will not be in those neighborhoods. Maybe you are farther east, maybe in Temecula.

The bottom line is that the white collar employment in San Diego on a percentage basis of the total working population, combined with the climate, combined with the military (ALOT of seasoned officers) combined with biotech/medical/UCSD, against a fairly constrained inventory with regards to housing age/school quality/physical locations will always put pressure on pricing. Radical moves in rates will help destablize it.

As sdr posted you can find some deals if you are patient and look hard enough. Or go get a hard money loan and purchase at trustee sale and then refi out in a few months and get a conventional loan.

[Myriad]

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.

[Myriad]

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.

[Myriad]

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.

[Myriad]

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.

[Myriad]

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.

[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.

[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.

[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.

[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.

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