Future of San Diego house prices? (Corona, Spring Valley: good credit, buy, luxury)

[BBslider001]

Originally Posted by 1AngryTaxPayer

Divorce is probably the #1 killer of prosperity. I don't know of many, men or women, that were financially well off after one. Maybe mentally better off.

I'll say on a personal note...it took me about 5 years to recover financially. One small example...I had about $15k in a savings account that was both of ours. We were saving to buy house. She wiped it the day before she said she was moving out. I couldn't do dick about it.

It took about 5 hours to recover mentally, and that part was worth it LOL...happiness doesn't have a price at times. That was 10 years ago and my life has been epic ever since, minus the normal everyday BS we all deal with.

[jnojr]

Originally Posted by sdlife619

Timothy was right, as he’s says in the Bible, “Money is the root of all Evil”.

It's "The love of money is the root of all evil".

But the love of money doesn't cause rape, for example.

[1AngryTaxPayer]

Originally Posted by jnojr

It's "The love of money is the root of all evil".

But the love of money doesn't cause rape, for example.

Have you seen your water bill lately?

[tt003e]

https://www.cnbc.com/2018/07/24/sout...he-nation.html

snippet from the article.

Southern California home sales crash, a warning sign to the nation
Sales of both new and existing houses and condominiums dropped 11.8 percent year over year, as prices shot up to a record high, according to CoreLogic.
The median price paid for all Southern California homes sold in June was a record $536,250, according to CoreLogic, a 7.3 percent increase compared to June of 2017.
In the past, California, one of the largest housing markets in the nation, has been a predictor for the rest of the country.

So based on this appreciation should level off a bit ?

[1AngryTaxPayer]

Originally Posted by tt003e

https://www.cnbc.com/2018/07/24/sout...he-nation.html

snippet from the article.



So based on this appreciation should level off a bit ?

I'm guessing that the rising interest rates will cool off sales. I'd hardly call it a crash though. Not even close. Every house in my area gets sold sometimes before the for sale sign comes up and the coming soon sign is still out. S Cal covers a LOT of area and that includes desert and inland that isn't as desirable.

Right next to that article http://www.latimes.com/business/la-f...724-story.html Record prices!

[expatCA]

Originally Posted by tt003e

https://www.cnbc.com/2018/07/24/sout...he-nation.html

snippet from the article.



So based on this appreciation should level off a bit ?

Housing sales also have dropped due to fewer houses on the market. That is not an indicator of a problem with pricing, just a problem with supply.

[expatCA]

Originally Posted by 1AngryTaxPayer

I'm guessing that the rising interest rates will cool off sales. I'd hardly call it a crash though. Not even close. Every house in my area gets sold sometimes before the for sale sign comes up and the coming soon sign is still out. S Cal covers a LOT of area and that includes desert and inland that isn't as desirable.

Right next to that article Southern California median home price jumps to $536,250 as sales fall Record prices!

Yep, fewer houses on the market also drive prices up and have nothing to do with a "crash/bubble".


Housing sales in numbers are dropping because fewer houses are being built and fewer homeowners are selling.

[Electrician4you]

Originally Posted by DougStark

One obvious point no-one mentioned is the fact that SD (and CA in general) are not the only "nice" places in the US to live, even if the climate may not be as ideal elsewhere. Go visit the Denver forum, for example. Everyone's mentioning the skyrocketing RE prices (and many are CA ex-pats.) My point is, at a certain point (inflated RE price), people realize the grass is greener elsewhere.

Who exactly defines what’s inflated prices? Denver or Arizona or Ny or Washington or pick your place here isn’t and will never be So Cal. Sure there are nice places in US to move to. Nobody is arguing that. But the places (wherever they may be) that are in demand to live in are getting expensive. Regardless of being in So Ca or Denver. People need to stop comparing So Cal with other parts of the country in housing. It would be like comparing Do Cal to a Tokyo. It just doesn’t make any sense to do so.

Originally Posted by sdlife619

Very true. CA’s housing market is extremely over inflated and I understand that the value of something is whatever someone is willing to pay, but sometimes you have to use common sense and just observe it’s true value through your own eyes.

A 1920’s-30’s 1200sqft House is not worth almost a million dollars, plain and simple, I don’t care how fixed it is.

Remember when a million dollar home in CA meant living in a mansion? How fast things have changed for the worse. Now a million dollar house in some parts in CA are literally shacks.

Shockingly there’s people that aren’t from here that are paying that kind of money for a home like this.


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850,000 isn’t close to a million dollars. That house it’s worth nothing. To you. Because you’re looking at as I’m buying a house and I don’t wanna pay that. Someone else will say I’m tearing it down to build my custom house because I like the view location area etc. so your opinion on value means absolutely nothing because you’re not even in that market price range. Observe true value through whose eyes? Yours? Again you’re priced out so it doesn’t matter. Ok so for the sake of argument to you it isn’t worth paying x price. But to someone it is. What you or I may consider inflated someone may see as a smoking cheap deal.


The problem is most people including you are looking at things with a purely subjective view when it comes to housing.

Originally Posted by tt003e

https://www.cnbc.com/2018/07/24/sout...he-nation.html

snippet from the article.



So based on this appreciation should level off a bit ?

When there is little inventory the sales numbers will drop off. Need to look at a lot more than that to start talking crash. Which imo is utter bs right now. Even with the way the tariffs are going truthfully we needed to stop kicking that can down the road because we were getting absolutely shafted.

[1AngryTaxPayer]

Originally Posted by Electrician4you

Who exactly defines what’s inflated prices? Denver or Arizona or Ny or Washington or pick your place here isn’t and will never be So Cal. Sure there are nice places in US to move to. Nobody is arguing that. But the places (wherever they may be) that are in demand to live in are getting expensive. Regardless of being in So Ca or Denver. People need to stop comparing So Cal with other parts of the country in housing. It would be like comparing Do Cal to a Tokyo. It just doesn’t make any sense to do so.
850,000 isn’t close to a million dollars. That house it’s worth nothing. To you. Because you’re looking at as I’m buying a house and I don’t wanna pay that. Someone else will say I’m tearing it down to build my custom house because I like the view location area etc. so your opinion on value means absolutely nothing because you’re not even in that market price range. Observe true value through whose eyes? Yours? Again you’re priced out so it doesn’t matter. Ok so for the sake of argument to you it isn’t worth paying x price. But to someone it is. What you or I may consider inflated someone may see as a smoking cheap deal.

The problem is most people including you are looking at things with a purely subjective view when it comes to housing.
When there is little inventory the sales numbers will drop off. Need to look at a lot more than that to start talking crash. Which imo is utter bs right now. Even with the way the tariffs are going truthfully we needed to stop kicking that can down the road because we were getting absolutely shafted.

The truth is that people are looking at bay prices up North and shaking their heads and then realize that San Diego still has ocean front on the cheap (in comparison). I wish I had bought a couple more.

[Pyramidsurf]

Originally Posted by ndindy

If prices go up much more, it will be at the entry level point. It's hard to see properties above $800k appreciating much more given the limilited amount of buyers at that point and above. A lot of properties above a million cycle on and off the market as people try to sell them. If there is a big shock to the economy or interest rates go much above 5%, I could see falling prices across the board.

I agree. I follow the market closely and see the same thing. Houses that are expensive (i.e. 800K Plus in coastal areas) do not move nearly as fast as homes that are marketed to the middle class.

To put it in perspective, I sold a house in Temecula that was in excellent condition for all cash in one day for 400K. Most families can afford a 400K house. The guy who bought it turned it into a rental since it's at the sweet spot for finding people to rent it.

Only the well off and upper middle class can come close to buying an 800K house. They would need close to 175K in cash just for the down payment and closing costs alone. Most people don't have that even when they make a lot of money.