San Diego is the Most Overpriced Home Market in America

Monday, May 14, 2007, 18:38 —by mas
This item was posted in Real Estate in San Diego category and has 13 Comments so far.

According to Forbes, San Diego is now the most overpriced home market in the county. From America’s most overpriced home markets:

San Diego has plenty of sunshine but little affordable housing. Only 5% of local residents could buy a median-priced home — one reason the city grabbed the dubious honor of ranking No. 1 on this list.

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13 Responses to “San Diego is the Most Overpriced Home Market in America”

  1. JeSais said on Monday, May 14, 2007, 19:28

    yeah, well, who the heck are all those people buying homes then? ’cause certainly more than 5% of folks own a home….

  2. Laura said on Monday, May 14, 2007, 19:51

    People who are overextending themselves and signing up for jenky mortgages (interest only e.g.) that will end in forclosure are buying homes in SD. That’s what drove the market up so fast – people wanting to get in before they were priced out despite already being priced out, and the funky mortgages that “allowed” people to buy more home than they could actually afford. Notice how the market has gone down, yet sellers are still trying to ask premium prices…it’s all about greed….

  3. San Diego Lasik said on Wednesday, May 16, 2007, 9:30

    We pay a VERY high price (for real estate) for the great San Diego weather.

  4. observer said on Sunday, May 20, 2007, 20:07

    The weather does not account for the grand canyon size dissociation between market prices and market value.

  5. San Diego Lasik said on Monday, May 21, 2007, 8:15

    It always comes down to supply and demand. If demand falls off, as is currently occuring, the price comes down!

    Since the Summer of ’05 the ‘average’ San Diego home value is down in the double digits!

  6. San Diego Apartments said on Monday, May 21, 2007, 11:10

    weather, quality of life, proximity to a major city, beautiful people? Doesn’t get much better than that.

  7. Justin Chimento said on Tuesday, May 29, 2007, 20:18

    Seven Reasons to Own Your Own Home
    1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you, pay, as well as some of the costs involved in buying your home.
    2. Gains. Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually. And while there’s no guarantee of appreciation, a 2001 study by the National Association of REALTORS® found that typical homeowner has approximately $50,000 of unrealized gain in a home.
    3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
    4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
    5.
    6.
    7. … Seven Reasons to Own Your Own Home
    ExchangeCA.com
    Search San Diego Real Estate, La Jolla

  8. san diego real estate said on Monday, July 23, 2007, 21:39

    Besides the weather that you all mention, the limited vacant land that is available to developers (in comparison to other cities) combined with the desirability to live in “America’s Finest City” will always keep real estate values in San Diego high.
    We have seen low double digit drop in home values in some areas since 2005… but don’t forget that real estate in those same areas had double or even triple from 2003 to 2005.

  9. Jeannie said on Thursday, August 2, 2007, 13:19

    San Diego truly is one of the most beautiful cities in the world. As a Trainer for the ASP Home Staging Course through StagedHomes.com, I have had the opportunity to train in cities all over the States, and I have to say that San Diego is one of my top 5.

    With regard to real estate (and given my profession) I have seen the incredible difference that Home Staging makes in terms of faster sales. With prices being what they are, it is more important than ever to Stage a home that is on the market for as fast a sale as possible.

  10. Link said on Wednesday, August 29, 2007, 10:15

    It looks like most of posts are from real estate agents who are trying hard to stya optimistic in a down market.

    The money you pay in rent is not thrown away. It pays for a place for you to stay. Not everyone is ready to buy a house or wants the responsibility and headaches of owning a house. For people who move or travel a lot, owning a house doesn’t make any sense unless you pay cash for it. For example, even I have enough money to buy a home cash, I don’t want to. Why? I am not sure if I want to stay in San Diego and I don’t really care for the marginal benefit of buying. My primary occupation is not making money from flipping houses.

    I lived around the US and the world. Salaray in southern California, or in this case, San Diego in particular is not much better than upstate New York for technology jobs. The difference is that in upstate New York, you pay 50% in rent or house.

    San Diego is a beautiful city with nice weather. But there are many beautiful cities with nice weather in the world. Along the Mexico coast line, there are even more scenic places with enjoyable climates. So wouldn’t they command even higher price – the sunshine tax? New York City doesn’t have the same weather, yet it’s still more expensive (at least in Manhattan).

    When those shoddy 1000 sq. ft. houses in areas like City Heights or National City list for $350,000, $400,000. You know it’s an unsustainable trend.

    San Diego does not have the urban liveliness of many major cities of the world, and as far as beautiful people goes, that’s debatable.

    By the way, good weather is subjective. I think the whole California good weather promotion is a fraud. The temperature difference between day and night is substantial that even on a summer night I have to wear a light jacket some times.

    I lived here for six years and I am about to leave with no regrets. It was enjoyable, but it’s time to enjoy other places.

  11. San Diego bail bonds said on Wednesday, August 29, 2007, 11:11

    Just read a great blog post with a graph of San Diego condo vales for the one year period from July ’07 to July ’06.

    A real eye opener! Mission Valley had a 34+% drop!

    The chart and story (8-27-07) are at:
    http://www.brokerforyou.com/brokerforyou

    George
    http://www.bail-bond-jail-directory.info

  12. NoRealtors.com said on Friday, September 14, 2007, 8:48

    I think that we should get rid of the Realtors, these folks do not that much and get a lot of $$$ for “Helping” to buy/sell a house, all they do is placing your home in MLS and print flyers what a nice job? If we could get rid of these guys you as seller and buyer could save from 4-6% on commisions.

  13. 'round the world said on Monday, September 17, 2007, 12:57

    Ah, he who lives with blinders! Travel the world and you will find no other place quite as beautiful as San Diego. I opine that it is not only America’s Finest City, but a true world class city by all accounts. Bear in mind that I speak not of the entire county of San Diego, which certainly has it’s appeals, but San Diego proper. With Balboa Park outside my front steps, and the sea just a couple of miles west, I live in a world which has captured my heart, mind, and soul!