Outrageous home prices
When I moved to San Diego in 2001, I remember being shocked at how expensive it was to own a home in the area. The average single family home was selling for somewhere in the range of $270,000 and about 25% of people could actually afford to buy one. Since then I have been hearing new figures as they come out, and I was flabbergasted when the cost reached over $300,000. At this level, owning a home here was definately out of my reach.
Last month I heard the latest figures. The average cost for a single family home in San Diego county is now $560,000. And 11% of people can afford this. This percentage was a 4% drop since the previous month. So what is going on in San Diego? Is it possible that 89% of people are renting or living well beyond their means? With an average price this outrageous, I wouldn't even be able to afford a house in a low income area. And I really don't think it's possible that 9 out of 10 people live in apartments and condos. But I suppose these figures only support all the new studies about rising debt levels, and people thinking they're getting bigger and better homes while the interest rates are low, not realizing that when rates go up years down the road they suddenly won't be able to afford their payments anymore.
But either way, these figures are absurd. Last I knew, people who owned homes worth half a million dollars weren't average. And the crazy thing is that homes are being bought within days of going on the market, for more than they are listed at, all because the demand is so high. I just don't get it.
I suppose the only reason it can happen is because of supply and demand, so obviously the demand is greater than the supply. I understand that people want to live in San Diego - it has great weather - but seriously, for half a million dollars? And to still be average at that?
Pretty soon the disparity here between rich and poor, or in this case, rich and normal, is going to be absurd. With all the talk of the economy and job shortages, how are people pushing the real estate market of Southern California to these levels?
I've spoken with people at work who are near retirement age, and they could either stay in San Diego and work until 65, retire, and still have their house payments. Or they could retire today, several years early, sell their home, move to a more affordable place out of Southern California and buy a house outright.
I must be missing something.
Last month I heard the latest figures. The average cost for a single family home in San Diego county is now $560,000. And 11% of people can afford this. This percentage was a 4% drop since the previous month. So what is going on in San Diego? Is it possible that 89% of people are renting or living well beyond their means? With an average price this outrageous, I wouldn't even be able to afford a house in a low income area. And I really don't think it's possible that 9 out of 10 people live in apartments and condos. But I suppose these figures only support all the new studies about rising debt levels, and people thinking they're getting bigger and better homes while the interest rates are low, not realizing that when rates go up years down the road they suddenly won't be able to afford their payments anymore.
But either way, these figures are absurd. Last I knew, people who owned homes worth half a million dollars weren't average. And the crazy thing is that homes are being bought within days of going on the market, for more than they are listed at, all because the demand is so high. I just don't get it.
I suppose the only reason it can happen is because of supply and demand, so obviously the demand is greater than the supply. I understand that people want to live in San Diego - it has great weather - but seriously, for half a million dollars? And to still be average at that?
Pretty soon the disparity here between rich and poor, or in this case, rich and normal, is going to be absurd. With all the talk of the economy and job shortages, how are people pushing the real estate market of Southern California to these levels?
I've spoken with people at work who are near retirement age, and they could either stay in San Diego and work until 65, retire, and still have their house payments. Or they could retire today, several years early, sell their home, move to a more affordable place out of Southern California and buy a house outright.
I must be missing something.
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