San Diego Ranks #1/Most Overpriced City (real estate, foreclosure, mortgage)

[SEAandATL]

Originally Posted by lb1

I saw a list like this last week, but can't remember what website it was on. It had the 10 most overpriced cities, which included Los Angeles, San Francisco, New York, Boston, Honolulu, etc. If I close my eyes and think of places I would want to live, these places are all ones I would consider. When I see other lists of the 10 places where you get the most bang for you buck, I would never want to live there. Maybe the most overpriced cities are expensive because people want to live there! You can't treat where people live like stocks / bonds. They are more than just an investment.

That's not necessarily true, because Atlanta is a nice city and it's cheap. Sure the weather might not be as good as San Diego, and the crime right might be higher, but as long as you stay of the bad areas and have heating and air conditioning you'll do all right.

[donalduckmoore]

The price should have been reduced in most of the areas in SD. Part of the reason that the price remains high is that it is the spring-summer house hunting period so that the sellers want to jack the price up a little in order to gain some money at the terminal phase of the house booming.

[Mugsy]

Originally Posted by SEAandATL

That's not necessarily true, because Atlanta is a nice city and it's cheap. Sure the weather might not be as good as San Diego, and the crime right might be higher, but as long as you stay of the bad areas and have heating and air conditioning you'll do all right.

In San diego, A/C is usually not needed. And heating is not either!
We have very mildweather here, and that can be amoney saver.

As far as gas goes, ride the transit! It is efficient.

[OREGONRAIN]

Granted San Diego and Calif in general is expensive. Am I sure they are the only places that are, absolutely not. People talk about calif like you need to be a millionaire to live there, then why are so many there that are not well off. Boston, NYC, DC, South Fla as well as San Diego and calif etc are all expensive, some people are just able to handle it better than others. I agree though that the cheaper places in the country are not always where most people want to live. Oh yeah Seattle and Portland two other rip off places to live.

[Surferjd]

NC is a backwards southern city. Most people don't like LA as much as other coastal CA cities until they get more familiar with the city. People who know the city well love it. People from New York love it so much that they relocate there driving up the housing prices and then complain that it isn't like New York.

Originally Posted by niy38

you got this wrong. I don't think many people like to live in LA after he
get a little bit more familar with this city.

and NC is a nice place.

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[JakeDog]

San Diego will always be more expensive than most cities, but it was WAY overpriced the last four years. You can see how long the homes have been on the market and how much sellers have slashed prices on ziprealty. The bubble has burst- it is definitely a buyers' market and will likely remain that way for the next two years. I'm not sure it has even bottomed out yet.

[NCN]

NC is a backwards southern city. by Surferjd

Actually North Carolina is a state. Some of us have a computer. I have been to California. It was a nice place to visit. There is no way I would leave North Carolina and its Southern Charm to move there.

[daugs]

Everyone has to remember san diego is a surrounded city. Ocean to the west mountains to the east TJ to the south and LA to the north.I dont think the buble in san diego can burst a slow leak definitely but never burst.We will never see prices go back down to pre 2000 prices

[ventouxbob]

This is an interesting read for those who did not buy yet. or those waiting. a bit scary yes.

Sell Now - The End Of The Housing Bubble

[socketz]

The one data point that resonates with me is the fact that only 5% of the people in SD can afford the median priced home. This needs to sit closer to 13% for growth to sustain itself. One has to believe that the market will adjust downward to meet the pool of available buyers. I watch the MLS activity in multiple areas to the north and the amount of inventory over 700k continues to grow. Under 700k, below 600k seems to be the only spot with solid activity. We also have to remember that this affordability crisis is really pretty new. Less than 10 years ago, San Diego was very reasonable.

I think what will happen is that the high cost of housing accompanied by the fact that appreciation is flat to down, will make it harder for employers to attract people to the area and inturn will result in more competitive salaries. This will soften the downward trend that's being promoted by both rising interest rates and the media which is scaring many people into sitting on the sidelines. In turn, more will rent, which will push rents up and further justify carrying a mortgage.

In short, things tend to balance themselves out in any market.