With Inflation looming and probable rental rates rising…

[TexasLine]

With Inflation looming and probable rental rates rising,…I feel the urgent need to stabilize my monthly housing cost.

http://www.redfin.com/CA/La-Jolla/9438-La-Jolla-Farms-Rd-92037/home/4862116

[SD Realtor]

Dont see a rapidly rising interest rate situation just yet. Someday but not imminent.

Examine your grocery bill from last year and the year before and you are already being victimized by inflation. Pretty much any basic foodstuff has increased in price and not by a trivial amount. Go look at your sdge bill and/or your wastewater treatment bill (water) and you will see your rates have also gone up compared to years past. It is also likely that soon you will be paying an increased state tax and/or sales tax.

I am sure we will soon have a predict the next year of housing price movement but as a preview, I read an interesting piece by JTR on his site and am inclined to agree. I think that the continued improvement in the employment situation in San Diego will simply provide further stability to certain submarkets. Combine this with the manipulation of inventory through lender shenanigans such as pricipal reductions, loan modifications, and even reo rental programs, it is very unlikely we will see large depreciation occur. I would even venture to say that we could see modest appreciation in CERTAIN markets. These markets include the usual more desired areas that mainstreamers like which have good school districts. Places like the I15 corridor as well as north county coastal.

[Coronita]

that is an awesome home.

Hey, if I could only take out an alt-8 100% financed laon on it, and then watch the usd crumble.

[TexasLine]

Well I guess it was an inside joke between me, myself, and I. It cracked me up when I stumbled on this property on redfin. I was looking, just for fun, around my old surfing grounds and the area where my grandma bought a house for 30 grand in 1963.

I am realistically looking for a house 1/10th that in Mo. mortgage. So it really cracked me up when I saw the $22,000 monthly payment, in a neighborhood I was familiar with.

I know, not funny to you…but to me…yes.

And since I truly think buying a house will soon be MORE than cheaper than renting, this property gave me a chuckle.

Not to mention the Zillow bubble estimate at 1.5 million and the post bubble price of 6 million…that just added to me giggle…:)

I guess you had to be me to get the joke. 😉

[scaredyclassic]

I got it.

[EconProf]

The price reflects the value of the land, not the building. It will probably be scraped.

[ucodegen]

[quote=EconProf]The price reflects the value of the land, not the building. It will probably be scraped.[/quote]
And replaced with another ugly McMansion – edifices to conspicuous consumption.

[Anonymous]

At that price it would probably be an actual mansion.

[TexasLine]

[quote=walterwhite]I got it.[/quote]

Well then, thank you. At Last! …how’s the house?

[TexasLine]

[quote=ucodegen][quote=EconProf]The price reflects the value of the land, not the building. It will probably be scraped.[/quote]
And replaced with another ugly McMansion – edifices to conspicuous consumption.[/quote]

All the properties around that one have already been scraped, re-positioned and re-allocated to the status of McMansion-ization.

The past replaced, … with a new future.

[bearishgurl]

[quote=SD Realtor]Dont see a rapidly rising interest rate situation just yet. Someday but not imminent.

Examine your grocery bill from last year and the year before and you are already being victimized by inflation. Pretty much any basic foodstuff has increased in price and not by a trivial amount. Go look at your sdge bill and/or your wastewater treatment bill (water) and you will see your rates have also gone up compared to years past. It is also likely that soon you will be paying an increased state tax and/or sales tax.

I am sure we will soon have a predict the next year of housing price movement but as a preview, I read an interesting piece by JTR on his site and am inclined to agree. I think that the continued improvement in the employment situation in San Diego will simply provide further stability to certain submarkets. Combine this with the manipulation of inventory through lender shenanigans such as pricipal reductions, loan modifications, and even reo rental programs, it is very unlikely we will see large depreciation occur. I would even venture to say that we could see modest appreciation in CERTAIN markets. These markets include the usual more desired areas that mainstreamers like which have good school districts. Places like the I15 corridor as well as north county coastal.[/quote]

SDR, got a couple of questions here . . .

How do you define a “mainstreamer?” What is their average annual HH income? Do you think their annual income is representative of the average of ALL RE buyers in SD, higher or lower?

What do you think the percentage is of county RE buyers overall, who gravitate towards the two areas you mentioned when shopping for property?

What do you use to define a “good school district?” Are they ALL in the “I15 corridor” and “north county coastal” area? Do you define the “north county coastal” area as west of I-5 only or on both sides of I-5?

If you believe the “I15 corridor” and “north county coastal” areas are poised to appreciate, why haven’t you invested in them? If you have, was it for a principal residence? If not, do you plan to invest in either one of them in the near future?

[Author]

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