Is the market insane? (Los Angeles, San Diego: for sale, real estate, rental market)

[verdegallardo]

I know the real estate prices are rather crazy here. I get that part. But theres hardly even any inventory that's decent @ $1.5m west of the 5. I put one under contract, it's a flip that was not done well at all but they totally rebuilt the house, so it's basically new. Had my home inspection and there's tons of stupid stuff, by stupid I mean a brand new house and half the windows are broken or don't operate or drains are leaking etc. My realtor? He says "in San Diego" you don't ask for many things to be fixed for fear of upsetting the seller.

Is the market really that crazy?

[Cardiff Kook]

Originally Posted by verdegallardo

I know the real estate prices are rather crazy here. I get that part. But theres hardly even any inventory that's decent @ $1.5m west of the 5. I put one under contract, it's a flip that was not done well at all but they totally rebuilt the house, so it's basically new. Had my home inspection and there's tons of stupid stuff, by stupid I mean a brand new house and half the windows are broken or don't operate or drains are leaking etc. My realtor? He says "in San Diego" you don't ask for many things to be fixed for fear of upsetting the seller.

Is the market really that crazy?

Short answer....yes. Everyone wants to own a place in paradise. Get ready to open your wallet and compromise big time...The line is that way ---->

[Bluefox]

Better off waiting for the bubble to burst.

[Pedro2000]

There are also a lot of investors who just want to rent the property out and many times the rental market is even worse because there are more people than decent affordable places to live. All that means is that a crappy place with bad electricity, leaky drains, 40 year old kitchen appliances and cabinets can still be rented out easily and quickly.

So why spend to fix it up ? So when some of these places wind up for sale because somebody realizes renting out a place isn't as easy as they thought, the new buyer sees a dump and sees many of them.

[1AngryTaxPayer]

Originally Posted by Bluefox

Better off waiting for the bubble to burst.

The bubble was 8-12 years ago. This is a steady increase like it's done over the last 80 years. The bubble was houses going for 750 that were worth maybe 500. RE West of the 5 doesn't get affected like most areas.

[The Flying Dutchman]

Bubbles come and go, but coastal CA real estate will always be valuable. A lot of prop 13 people who 'got theirs'.

[hitman619]

Banks are still holding on to inventory.

[photogirlla]

Depends on the area. Here in Fallbrook, there are many listings that are just sitting there because everyone dumped their 4000 square-foot houses as soon as the market started to rise. There are tons of houses @ 3000 sq ft that are way more ( 200-300k) than when I bought (2012). I personally think people are being a little over optimistic, Fallbrook is not the end all destination in San Diego yet some sellers are pricing as if it were.

But west of the 5? Good luck. And LA is way worse! My best friend is a realtor in Los Angeles and the multiple offers, even in places like Eaglerock, Glendale, Los Feliz, are off the charts. And beach properties? Multiple millions.

So SD is a bargain in that respect 1.5 isn't that bad, and yes, it's either a fixer or a flip( which often ends up still needing work).
Good luck out there!!

[JohnAlt]

There's a mini bubble for sure, but probably not west of I-5.

[NYSD1995]

There are still too few homes for sale, and it seems 10% overpriced, but not 'insane' other than what some of these people think their homes are worth.