Seems that all attention is paid to people who can’t afford to buy a home, even at the current depressed prices.
What about the large number of current San Diego homeowners with great credit, with the ability to comfortably meet a mortgage payment two or three times the one they are now paying? There are thousands, maybe millions, of homeowners who have outgrown their current homes, either physically or socially. They are held back by the drop in value of their present home. They have so much negative equity that they just can’t scrape together the huge pile of cash they would need to make a move. They sit quietly out of the market, making their monthly payments. They are the potential stimulus the economy needs to tap.
Great article! I know it looks real bad from some certain angles, but here in San Diego, there may be a side that we aren’t taking into account. In the last downturn, San Diego came out sooner and less impacted than the rest of the country. Since then, San Diego has grown into a more sophisticated city, but we are just beginning to be recognized by the rest of the world as a MAJOR over all BEST PLACE to LIVE CITY!!!
We have several major industries move here in the last 10 years, including the golf industry, Biotec, and Medical industries…
This is fast becomming THE place to live! La Jolla is world reknown, but few outside of the US ever heard of Carlsbad! That will change soon, and along with the population growth will be a shortage of housing…especially single story housing!
I do a LOT Of relocation. I see many companies relocating to San Diego daily. I place hundreds of new families here every year, and they all become homowners within their next 3 years. San Diego has the weather, the sports, the type of communities families want. You can walk to elementary schools here. You can play outdoors all year long. We have water sports, and mayor cultural events. Once you have come to this city, you want to stay!
This is what will continue to keep our real estate in check in the coming years. People want to live here. People are relocating to San Diego by the thousands.
There is only SO much coastal property to be bought. It will always be sought and highly desired. I believe we will NOT see a major decline in real estate values in the next years, as we are already showing signs of a shortage of housing in certain areas.
sher