San Diego housing stats for May. No signs of slowing down. (Mountain View: sales, real estate)

[JoeSanDiegoHomes]

What do you think of these? These are for detached homes.

[cruitr]

I am well versed in reading stock market charts. However, there's something wrong when $1M Clairemont homes are flying off the shelves.

Mortgage rates were 16% back in 1981. My wife and I felt lucky getting an 8.5% VA mortgage back in 1978.

Are current mortgage rates the cause of today's insane house prices? Or did everyone in the USA decide that good weather is worth a whole lot more than it was a few years ago?

[1AngryTaxPayer]

Originally Posted by cruitr

I am well versed in reading stock market charts. However, there's something wrong when $1M Clairemont homes are flying off the shelves.

Mortgage rates were 16% back in 1981. My wife and I felt lucky getting an 8.5% VA mortgage back in 1978.

Are current mortgage rates the cause of today's insane house prices? Or did everyone in the USA decide that good weather is worth a whole lot more than it was a few years ago?

Most I know are saving about a grand a month on fuel. That plus people get to work from home and an apartment is not the ideal choice. The two together are driving a lot of home purchases imo.

[hitman619]

Remote work from Home is fueling the home prices. My new Neighbors 6 houses up just bought for 775K (place needs work), They are from the Mountain View area of California. No word yet on what they do for a living but we can assume its one of the bigger Tech Companies.

[TacoSoup]

Originally Posted by 1AngryTaxPayer

Most I know are saving about a grand a month on fuel. That plus people get to work from home and an apartment is not the ideal choice. The two together are driving a lot of home purchases imo.

There’s a ton of reasons, low interest rates, stabilizing your housing costs, working from home, etc, etc, but you bring up a good point about saving money on gas and using it elsewhere.

My friend and his wife are DINKs (with no intention of having kids) and had a charming, albeit small, 2 bedroom house in North Park with the tiniest yard. They loved living there for the obvious reasons, but they basically did a linear trade for a 3 bedroom with a nice backyard in Fletcher Hills.

Both working from home sped up the move, but he told me when we had them over last fall that covid and the lockdown made him realize several things. He knew they spent a lot of money going out after work for a drink and a bite to eat, but didn’t realize how much it really was until they stopped for a few months, but more so he realized he doesn’t really like people, lol. He said besides the money saved, at this point in life he’d rather be at home grilling a steak and having drinks with his wife and friends than going out.

[Igor Blevin]

Originally Posted by JoeSanDiegoHomes

What do you think of these? These are for detached homes.

I would like to see those charts overlaid with 2002 to 2009. In 2005, people also said "no signs of slowing down".

IMHO, history repeats itself. Or in other words, "it is not different this time". San Diego won't slow down until it does.

[newgensandiego]

Originally Posted by Igor Blevin

I would like to see those charts overlaid with 2002 to 2009. In 2005, people also said "no signs of slowing down".

IMHO, history repeats itself. Or in other words, "it is not different this time". San Diego won't slow down until it does.

San Diego is getting and will continue to receive larger numbers of higher income earners who can afford these homes. Our own home-grown industries, in addition to newer entries and remote work are contributing to that. The average borrower is much more financially stable than the previous bubble.

Also San Diego is still pretty much a bargain compared to SF and LA. All else equal, you get a much nicer house in a much nicer neighborhood (and much closer to the beach) in SD. San Diego is also not building housing--somehow even worse than SF and LA.

There's so much on the demand side and supply side that is contributing to this situation. Prices could go down, but I don't see them tanking. Plenty of baby boomer retires willing to move here if they get the chance.

[JohnAlt]

Originally Posted by cruitr

Are current mortgage rates the cause of today's insane house prices? Or did everyone in the USA decide that good weather is worth a whole lot more than it was a few years ago?

Prices are souring nationwide.

Interest rates are fueling the market. Amazing how much more can be afforded with 2.7% vs 5% or 8% or 10% rates. And prices reflect what people can afford, which is a lot more because money is so cheap.

[eastcoastbias]

Aren’t people actually driving these days?

They are taking road trips instead of flying. They are getting out of their houses on the weekend because they were stuck at home for a year.

I work half at home and half at work now the traffic is almost back and it’s been that way since late winter early spring.

So really how much are people saving in gas? And gas is historically high right now too.

I think it has more to do with interest rates and people couldn’t travel and spend frivolously like they normally do during the pandemic. People were actually saving money and now the real estate world is telling folks on the verge to BUY because of the rates.

[JoeSanDiegoHomes]

Originally Posted by Igor Blevin

I would like to see those charts overlaid with 2002 to 2009. In 2005, people also said "no signs of slowing down".

IMHO, history repeats itself. Or in other words, "it is not different this time". San Diego won't slow down until it does.

I'm not saavy enough to superimpose the graphs. I have back to 2004. It doesn't really look the same to me. With that said, I make no claims that it won't slow down. It just didn't have last month, or the previous 12 before that.

Median Sales price
https://sdmls.stats.showingtime.com/.../s-v1/Xhp2-wpS


Percent of original ask
https://sdmls.stats.showingtime.com/.../s-v1/Xhp7-dRo


Sold listings
https://sdmls.stats.showingtime.com/.../s-v1/Xhpb-VHj