[Alex_angel]

Bugs,
that is the scary part. That old saying about birds of a feather. Well you want to live in an area with the same income level that you’re at. People at different income levels have different expectations. You’d hope in an area that has an average home price of $800k that it would be quiet and that the majority of people are working professionals and will not be partying it up on a wednesday night. Now all of a sudden the builder decides the 3000sqft homes won’t sell and put up a bunch of 1500sqft homes for $400k. Is is a different demographic now. All of a sudden things change.

The dumb San Diego thought that an area must be good because its expensive does not hold true.

If you look at an area like Rancho PQ. 5 years ago the avg home price was $200k. Now you move in for $700k, your mortgage is probably 5 times higher. You have no equity and are barely scraping on a $130k salary by while your neighbour works at a 7/11 and is paying $800 a month for mortgage.

[Alex_angel]

Realtors in SD have a simple formula.

It is “real price + commision + 100% markup + HOA + MR + fees + inflated Property tax”

Here is the equation with the number you quoted.

$400k + 6% +400k + $325 per month + $275 per month + $10000 + 1.75% = WAY TOO MUCH!

Very simple indeed.

[Alex_angel]

I am well aware of the housing situation but I was wondering about 4S in particular. It just seems to me that these builders can’t be trusted. They show you a map of lots for future homes but have been sitting on the same phase for months. Is there any restriction as to what they can build if those remaining lots stay empty? In one part of 4s it looks like they are finishing a huge 5 block apartment compex. They might be calling them condos but they are apartments. Its kind of sad buying a home for $800k when across the street will be this loud busy complex with tons of traffic and noise. How can anyone be sure that if they bought away from this that the builder won’t decide homes aren’t worth it and try to throw up a condo right next door to you on the unsold lots where you thought only sfr would be.

I look at some areas such as Carmel Valley and although the world of real estate is collapsing that area is still growing and prices remain strong. Pardee refuses to dip prices and still has a huge amount of land they are preparing for more homes.

Some areas are in duress while others are still booming. It seems people are still buying. I’m not sure where they get the money from but it is still happening.

[Alex_angel]

Tierrasanta is not far from where you’re talking about and you can rent a decent sized townhome for pretty cheap.

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