Median price of a single family home in San Diego: $612,750 (renter, loan)

[JohnAlt]

Originally Posted by 1AngryTaxPayer

JThe worst is estate taxes. Let's just take your parent's life long sweat and give it to those that either can't pay their own way or just showed up.

A lot of heirs fall into that category too.

[shmoov_groovzsd]

Originally Posted by RosieSD

I don't think we'll see a true correction for a while simply because inventory is so limited right now.

That said, people looking for "starter homes" (let's say priced under $500,000) are the ones who are going to face the most competition and also stretch the most to get into a SFH. They'll have to start considering areas that they might not have considered in the past. Take a look at the places where the most homes sold in December: Santee, Escondido, North Oceanside. Those have not traditionally been "hot" areas for RE sales.

Yes, I should have clarified
My reference was to the run up and overcorrection in the economy overall, not just real estate. Combination of broader economy, stocks etc and how that ultimately plays out when it trickles down to San Diego.

Some of these starter home areas, as we have chatted about RosieSD, seem just ludicrous. The trajectory they are on keeps bumping those prices up every month because of the supply. IMHO, its well out of "move up and out" after seven years to something bigger range. Its REALLY assuming that prices will stay the same or rise for that long.
I simply don't believe SD has a strong enough economy to sustain that trend unless outside influence is driving the majority of it. I mean I am not going to challenge the historical trends for this area. No way. In the real world, where people make money in a diverse economy, San Diego has improved little in that respect and just doesn't rank too well when tourism is its number one industry.

As a seller, I had a feeling my home would sell quickly, but I was more than surprised at not only how quickly, but the kind of offers there were. I would be lying if I said it wasn't a great to position to be in and the right time for us. But folks in the middle spectrum of wages etc, this has to be somewhat demoralizing.

[1AngryTaxPayer]

Originally Posted by silverkris

The estate tax exemption, changed for 2018, is $11.2 million. That's a pretty high hurdle.

California doesn't have an exemption tax. So what's the problem?

Many of the ranches in SD County are worth way more than that. They aren't that big either so they'd likely have to sell a bunch of it just to keep some of it.

[snpdragr]

Originally Posted by Ultrarunner

Raising the tax of someone that bought for a lesser price doesn't help the buyer that paid a higher price...

Actually it probably would because then the overall tax rate could be lower and the government could still meet funding needs

The Supreme Court has already ruled a tax based on acquisition doesn't violate the law... we pay taxes on acquisition price on everything else... why can some not accept this for when it comes to homes.

Yeah I have no doubt that it's legal. I simply don't agree with the design of the tax and I think it's probably sub-optimal from a variety of perspectives. It is very optimal for long time home-owners (and also corporations).

[AnUnidentifiedMale]

Prop 13 puts restraints on the housing market. California already puts restraints on the housing market with its excessive regulations. Prop 13 exacerbates the problem.

The sky-high values are great for owners, but terrible for anyone who wants to buy a house, other than those with family wealth or very high incomes.

If you believe in the American Dream of home ownership, it's impossible to think that the overall housing situation in California is a good thing. We have the highest levels of overcrowded housing, and the lowest levels of affordability in the US.

[msgsing]

Originally Posted by AnUnidentifiedMale

Prop 13 puts restraints on the housing market. California already puts restraints on the housing market with its excessive regulations. Prop 13 exacerbates the problem.

The sky-high values are great for owners, but terrible for anyone who wants to buy a house, other than those with family wealth or very high incomes.

If you believe in the American Dream of home ownership, it's impossible to think that the overall housing situation in California is a good thing. We have the highest levels of overcrowded housing, and the lowest levels of affordability in the US.

Yes that's all true. And yet the housing complex just down the street is selling $800,000 new homes with no problem. Some people have the money. It's just the middle class that that faces an affordable crisis. The elites can buy irregardless of price.

[sdlife619]

Originally Posted by msgsing

Yes that's all true. And yet the housing complex just down the street is selling $800,000 new homes with no problem. Some people have the money. It's just the middle class that that faces an affordable crisis. The elites can buy irregardless of price.

It’s incredible how fast homes in the $500-800k range are selling. Just imagine the down 20% payment on a 800k home not including taxes, insurance and the monthly mortgage? There’s not too many people that have over 150k in savings or that kind of cash for a down payment, not even some professionals.

For what people are paying for these homes, they’re aren’t getting their moneys worth IMO. Especially the older homes built in the 50’s-60’s that even though have been remodeled, it still has old bones that structurally could be comprised due to age.


The days when modest people could buy a house in SD with a salary of 50-100k a year is over.

[malcorub16]

Originally Posted by AnUnidentifiedMale

Prop 13 puts restraints on the housing market. California already puts restraints on the housing market with its excessive regulations. Prop 13 exacerbates the problem.

The sky-high values are great for owners, but terrible for anyone who wants to buy a house, other than those with family wealth or very high incomes.

If you believe in the American Dream of home ownership, it's impossible to think that the overall housing situation in California is a good thing. We have the highest levels of overcrowded housing, and the lowest levels of affordability in the US.

I am still unclear on how exactly prop 13 manipulates the housing market other than it protecting home owners from having to sell when property taxes get uncontrollably high....

I'd much rather one not be able to afford a home they never had to begin with than someone lose their home due to exponential jumps in property taxes because of the housing market...as is happening in my home state of Texas.

[Ultrarunner]

Originally Posted by snpdragr

Actually it probably would because then the overall tax rate could be lower and the government could still meet funding needs.

Call me skeptical but I have no faith any a tax reduction would happen...

[GuyInSD]

Originally Posted by sdlife619

It’s incredible how fast homes in the $500-800k range are selling. Just imagine the down 20% payment on a 800k home not including taxes, insurance and the monthly mortgage? There’s not too many people that have over 150k in savings or that kind of cash for a down payment, not even some professionals...

Well, it IS possible to buy something other than a SFH for one's first piece of Real Estate - sometimes you have to try crawling before you can walk...