I heard an interesting comment the other day on broker caravan.
The listing agent said, “Maybe we’re all undervalued?”, as he sat on his $6,000,000 listing with nobody else in attendance.
If you judge it by the weather, he could have a point. If we have the best weather in the U.S.A., then we should have the highest-priced real estate.
It probably means that rich folks from around the world who are retiring will be giving strong consideration to the San Diego area. Retirees are going to be drawn to where the grandkids live first, and if the ‘kids are in the general Southern California vicinity, then San Diego might be considered for retirement.
Either that is happening, and/or our employment base is stronger than ever.
Two days ago, we saw that the NSDCC sales this year between January 1st and June 15th were 7% higher than last year.
NSDCC is the coastal area between La Jolla and Carlsbad that has a population of around 300,000 people. Carlsbad makes up about a third of the population and sales in the area, and realtors and buyers alike consider it a quality lower-priced alternative to the affluent Encinitas-La Jolla stretch.
Here is the breakdown of those January 1st-June 15th sales:
| Category by Area | |||
| Carlsbad # of New Listings | |||
| Carlsbad # of Closed Sales | |||
| Carlsbad Median SP | |||
| La Jolla-Enc # of New Listings | |||
| La Jolla-Enc # of Closed Sales | |||
| La Jolla-Enc Median SP |
The number of sales in Carlsbad corresponded with a similar increase in listings. But look at the higher end market – the year-over-year sales were 8% higher, in spite of 2% fewer listings! The median price increased nicely too.
This is an affluent area, and real estate is booming – could it be undervalued?
Didn’t George Bush joke about the ‘haves and the have-mores?’ Maybe he was referring to Carlsbad and La Jolla?
There is still room inland (along the I15).
Issue is the population is growing and the industrial base in NC is growing along with it, when you fill up the coast you need to look inland a little. (still better than phoenix LOL).
That is also pushing growth in Temecula and surrounds of both population and industry (from both sides — to from the north and south), Also Carlsbad is in commuting distance of Irvine as well.
I should also say a lot of people just want to be able to drive to the coast when they want to, they don’t NEED to be ON the coast.
Everyone can walk or set up day camp between the 10-35 million dollar homes and the water.
(TV is getting growth from the North and South) is what I meant to say (so is Carlsbad).
As long as foreign nationals need a place to launder their money, quality California coastal communities will do just fine. Rental properties too.
The Chinese nationals in my area are buying up apartment buildings, and dropping some ridiculous money rehabbing them.
With rental properties, they seem to have a pretty tight network for making things happen over here, from the real estate broker, to the construction crews doing the rehab, to the property management company that will run it for them, while they’re presumably kickin’ back in Shanghi. Strange days indeed.
I remember the days in Hawaii when foreign buyers weren’t even flying in to look at properties. They would pick a general area, have their broker-of-choice jump in his/her car and cruises neighborhoods scoping out properties. Then photos would be sent of the OUTSIDE of the homes, and viola: SOLD!
@daytrip, Yes, strange days indeed…
“Didn’t George Bush joke about the ‘haves and the have mores?’ Maybe he was referring to Carlsbad and La Jolla?” -Game Agent
As my (tech guru) son has reminded me more times than I wish to remember: “Mom, Google is your friend.”
http://www.c-span.org/video/?c4506459/haves-mores