Softness in San Diego...

Posted by: Dean Foust on August 9, 2005

The watch is on for which of the overheated markets are first showing signs of cooling. Looks like San Diego is the bellwether market in California, and some experts there think that the current cooling in San Diego is a proxy for what’s yet to come in the rest of California. A good read in this past Sunday’s Los Angeles Times on the situation in San Diego. Any readers there who can confirm this trend?

Reader Comments

Jonathan

August 9, 2005 10:28 PM

La Jolla is still hot...a $22M home recently sold. Not many for sale signs out in this area.

Dave

August 12, 2005 3:45 PM

I'd have to agree with the article, living in North SD County. Job market and economy are strong here, so I thing housing market will cool, but still stay pleasant.... like the weather.

John

August 13, 2005 1:14 AM

We are having a terrible time selling homes in La Jolla. The average price of homes peaked here in June of 2004, and has been falling for the last year. All of San Diego home sales have slowed, and prices are being slashed. Just look at internet ads. There were 10 lowered prices here a few months ago, and now there are over 270 reduced prices. http://sandiego.craigslist.org/cgi-bin/search?areaID=8&subAreaID=0&query=reduced&cat=rfs&minAsk=min&maxAsk=max

Impatient Seller

August 14, 2005 1:34 PM

In North County San Diego, every 1/5 homes seems to be up for sale, atleast in my coastal zip code. Not that many interested buyers either. Is it possible that most prospective buyers and sellers already fear a bubble ? Or is it just summer time ?

DK

August 15, 2005 9:27 PM

Guys,
the party is over.
Lets face it those of us who have made a killing in real estate have profited.
Some others see the profit others have made and jumpped in with with both feet..well why will someone who bought 2 properties at 200k each and hoping to sell them for380k each in 2years belive there is a bubble......it is like a death sentence for those guys.
You will not see anyone who has made a neat 200k in cool cash money over the last 4 years pouring the money back into real estate.
I lost money in the stock market and learnt that a 15% profit in any investment, is a reasonable profit.
I'll be back in 8 years time for the 2nd half of the REB

Dave

August 16, 2005 2:19 AM

La Jolla and several areas in SD County have seen significant price declines over the past 12 months. These are tracked by Dataquick and average sales prices and changes are posted on http://www.dqnews.com/ZIPLAT.shtm

The bubble is bursting quite rapidly in overheated SD County, and is starting to leak rather noticably in Los Angeles, Ventura, and Santa Barbara Counties.

Eric Gray

August 19, 2005 12:25 AM

Yeah but what about Orange County? San Diego's neighboring county north? I'm not seeing any price reductions on Craigslist. When are the prices going to drop up here? When I drive by dumpy condos for 400K, I cringe and almost laugh at anyone who would buy these dumps.

Joel

September 12, 2005 8:35 PM

In the Pacific Beach Area, every 5th home has a for sale sign on the front lawn. Seems to me prices have peaked, and buyers are becoming scare. Home owners are trying to make a quick buck and cash in. Everyone knows the bubble is about to burst. Why would I pay 3100 a month for a mortgage on a 3 bedroom home, when I can rent it for 1500 a month? Its time for some Hurt in San Diego!

Shar

February 14, 2006 7:09 PM

I'm not a real estate expert, but I bought my first house in SD 30 years ago for $70,000 and my properties are now worth about $2 million. I've bought in high interest, balloon payment markets, and sold in low interest high value markets, hung on in flat markets and refinanced, refinanced, refinanced. This was not a strategy mind you, just seemed like the thing to do at the time. The real value to me is living here, in a box if I have to. I'll take the risk here any day compared to any place else.

Gary Anderson

March 9, 2006 11:16 PM

Well, I know that by now most have seen the San Diego bubble bursting. Yes, it is beautiful, and some will pay a reasonable premium to live in SD. But only idiots will pay an unreasonable premium. Shar got in at a great time, and as long as she has not squandered her equity in loans for suv's and the like, she will be ok there. However, the ones just in in the last three years with exotic loans, who are still in, may have serious issues in the near future.

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BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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