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sdrealtor
ParticipantI figured that comment would resound with you in more ways than one. The transformation over there is amazing to watch
ParticipantMortgage still available at 4.25% on a national level. 10/1 ARM much lower!
Operators are standing by!ParticipantAbsolutely! My daughter got into and goes to UCSD, got into CPSLO (off waitlist) but did not even get a waitlist offer from SDSU with a 4.0 in HS. I have heard that they are trying to push all kids that live North of 56 to CSU San Marcos which is booming in its own right and is the fast rising star in the CSU system. The founder of Viasat and the company donated a ton to start up an engineering school there. They are building massively after acquiring many acres of land surrounding the campus to the west of Twin Oaks. Kaiser adjacent to that is expanding massively too. Everywhere I look I see growth and more high paying jobs coming. Really the perfect storm brewing here.
BTW after UCLA, the 2nd most applied to school in the country is UCSD. My daughter has friends from all over the country and the world there.
ParticipantAnd its not just that. SD is rapidly becoming a world class city it ways it’s never been before. The Shell downtown is a great entertainment venue. SDSU will have a right sized stadium opening next year. The campus will expand greatly to the west at that site also. The sports arena is getting rebuilt. There is a high end Beach front resort in Encinitas now attracting A listers on a regular basis. Bill Gates is currently building himself a massive beachfront compound in Del Mar. UCSD is building an 8th college and there are cranes all over the golden triangle. Carpool lane going north and more south opened recently adding about 10 more miles of it each way on the 5. There trolley blue line just opened. The list just goes on and on. Taken alone none of these is close to earth shattering but taken together the inertia and velocity of change taking place here are stunning!
ParticipantLife sciences is definitely the biggest strength. Lots of money for tech pouring into UCSD also. It’s already very good but seems poised for a leg up in tech, engineering and CS. Also Renowned for marine biology, theater and data science among others. Would surprise many to know more Broadway plays start in SD than anywhere else in the country mostly because of LJ Playhouse on campus. The latest show to premier Bhangin’ It seems destined for Broadway. There is so much going on at that campus it’s amazing. It’s growing in every direction and every way
ParticipantOne more thing to consider is that the path to homeownership here for most does not begin with a house.
It never has.
I bought my first place in Encinitas in 1997 for $190K scraping together a $10K down payment. It was a townhouse and I felt like the stupidest guy on the planet spending that much and not getting a house.
Two years later I sold it for 250K and was looking to take the next step up which was a starter house around 325K at the time.
I saw some new construction around here. It was the first in many years but it was a much bigger stretch. I would have to take 2 maybe 3 steps up to $400K for a new house. It would also require lots of post move in expenses not the least of which was $50K+ of landscaping. It was scary and a big stretch. But I recognized it was the opportunity of a lifetime to get an amazing place. One I could stay in for decades. Had I not done that I would never be where I am and here I sit.
I share this as an example that the path here unlike many places is a ladder to climb for most. It requires steps, patience, some luck, some good choices and yes some guts.
And in case you are wondering rates were around 9% back then which I couldnt have swung. I started with a 5/1 ARM at 7.5%
And VP’s in financial services are a dime or dozen. Basically marketing title for financial advisors with several years of experience but no real management role over employees
Participant[quote=limkotir]Does anyone have historical data that highlights the correlation and causation effect of high interest rates to San Diego home sales volume and price. Maybe overlay interest rate over one of Rich’s graphs.
Simply put: how does high rate (e.g. 6% 30 year mortgage) affect sales volume, and sale price?
Home prices, like many complex real world Y-variable on a mathematical equation, probably are impacted by a handful of dynamic X variables (X1…X2…X3…etc.), it probably is never that simple and straight forward if X1 happens (interest rate), then Y will occur (sales price).
Looking to get educated by the smarter and more educated folks here! Thanks.[/quote]
The challenge with that approach is rates dont rise in a vacuum. Often they rise in a booming economy or with inflation which is bullish for home prices.
ParticipantIm just one guy and dont have enough to make a statement right now. Last two both grew up there and are techies. One bought his 1st home a year ago and is looking great. The other bought his 4th property there a few months ago and already looking great on it it He will soon own the whole town LOL
FWIW Ive had 1st time homebuyers put $500K+ down on their first home before. Its not uncommon for immigrant techies to live frugally in apartments while single or recently married and save tons between income and RSUs. Once the kids come and get near school age they buy houses. Thats not something you see in Kansas Toto
ParticipantOperators are standing by!
Participant[quote=evolusd]Selling my mom’s townhome up in LA. Buyer’s loan has a rate of 4.875%. Ouch.[/quote]
Yup condo rates are higher and must not have great credit or good down. Thats about 0.5% above current market for good buyers
ParticipantHouse in Encinitas just closed for $6M which is $300K above asking so a bidding war on it. It closed in 7 days! Wow those lenders are fast these days and congrats for locking in while rates are still low!
Participant[quote=deadzone][quote=an][quote=deadzone]For you apparently. Like SDR perhaps math isn’t your strong suit. Do you also dispute that interest rates are going up? Who cares if SD rates are slightly lower or higher than the national average, that is irrelevant. They are going up everywhere at roughly the same rate. SDR thinks SD is isolated in some type of a utopian economic bubble. Sorry it doesn’t work that way. Everything is connected to the Fed.[/quote]
Nope, just you. No one ever said rates in San Diego is lower. You obviously have no idea what goes into getting a particular rate.[/quote]Rates are UP across the board, and only going higher. There is no example for any type of loan, for any city, that rates have not gone up substantially in the last few months.[/quote]
Actually I think 10/1 has not. A few months ago they barely existed and pricing was awful as no reason to take one. Now coming back with sharper pricing. Not saying they are down but definitely not up substantially. It doesn’t work how you think it works
Participant[quote=an][quote=deadzone][quote=sdrealtor]
You are correct and of course I knew that and was just working over deadzone because it’s yet another example of how he does not understand in the slightest how real estate works. For that matter no one buys an average house or takes out an average mortgage. Average rates quoted on a site like that are for the country not here. The quality of borrower here is generally substantially higher than most places. The loans are also much bigger While still in the conventional range so the rates /fees are lower.[/quote]Ok got it, so interest rates aren’t going up in San Diego?[/quote]
Reading comprehension is tough[/quote]He lives in a dark hole unaware all real estate is local. Some places it was flat during the bubble while others doubled. Some places are up a little during the pandemic expansion some are up a lot. No place is average except scardey’s kitchen but even that is underconstruction and being remodeled! Gooal!
ParticipantNegotiating offers I’m certain
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