Klinge Realty Group
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Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024
- (858) 997-3801 call or text
CA DRE #01527365, CA DRE #00873197
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I'm Jim Klinge, local broker affiliated with Compass. Most tweets are from my blog https://t.co/L9m2r9DMMM regarding North San Diego coastal market. CA DRE #00873197
New post (Beach Report) has been published on http://bubbleinfo.com - https://www.bubbleinfo.com/2023/03/25/beach-report/
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That track home on Lynwood sold for $1,189,000 in 03. With Mello Roos and HOA over $6,000 a year. It’s insanity that it just sold for $1,500,000.
When ????? will prices adjust?
There is a good reason that all the previous projections were wrong. Few considered the impact of the government continuing to try to prop up the economy with nothing held back. The federal government is supporting the economy to the tune of $120 billion a month (deficit spending).
$120 billion a month would buy you every new house sold in the country, every new car sold in the country, and everything sold at WalMart, Target, Best Buy, Amazon, Dell, Apple, and McDonalds. And this is happening every month!
So when will prices adjust? Well if the money printing continues, not for a while. Prices may even stay high, but a loaf of bread might also cost you $20. Or if the stimulus is pulled back who knows … but indications for now are that helicopters will be dropping money from the sky and at least some folks will be scooping up enough to pay cash for big homes.
billwilson, there is a strong suggestions that a gradual lowering of the mortgage interest deduction is on the table (over a 5 year timetable.)
That is likely to pull the legs out from the mid-upper and upper range of the housing market.
The lower the interest rate becomes, the less important the tax deduction is–at zero precent interest, the deduction is worthless–we may be heading there, or close.
The only table that proposal is on is the coffee table of armchair tax and spenders. It won’t be part of any bill proposed by the coming Congress following these elections.
IMO the reason we’re seeing some of this higher priced inventory moving is “fear” of inflation. The government sold TIPS with a negative yield just last week and Oil/Gold/Silver/Stock Market/everything has ramped about 10-15% in the past 2 months. Ever since people assumed QE2 was right around the corner we are seeing a mad rush to get into assets before “inflation” hits.
These people may end up being right, but if they are wrong and this massive inflation doesn’t show up soon we may see a reversal of the panic fear of inflation. If you were to ask the question to most of these high end home buyers what their 3 biggest reasons for buying now, future inflation expectations would probably apply to 50-75% of the current buyers.
Your area of SD seems so so cheap compared to the top rated school town we picked in LA. Funny I always though the SD area was more expensive! We are currently renting and actively looking to buy … wish Jim (or his twin!) covered this area.
I am very afraid to buy, but we spent several years renting overseas and we just want our own place. Also very limited inventory in the type of house/property we are looking for.
House buying is stressful enough without all the added employment/economy issues …
1.5M makes no sense for Lynwood when you can buy the 3600 sq. ft. centex single story in Crestview for 1.45M.
I lived in Crestview and let me tell you it blows Lynwood out of the water. No Mello Roos in Crestview either!
Your local analysis is excellent. That list of things that “would” tank the market is pretty scary. There was another list being compiled simultaneously. The list of government actions to counteract the effects.
1. Allow banks to mark to market (price their inventory at their discretion and dribble it out at their own pace).
2. Purchase mountains of toxic mbs from the banks.
3. Offer cheese to first time buyers (and lots of people with the cahones to lie about being first time buyers).
4. Give almost all income tax collected in the last 10 years back to the builders as cash money.
I can’t understand why 10 year t-bills (and hence mortgage rates) are this low but I suspect the government is involved somehow.
In any case that list did the job and counteracted the list you went through. In the grand scheme of things it’s probably the least worst situation. But wow…it’s weird!
Bummer…I thought you had captured a green flash!