01-29-2008, 06:25 AM
Aloha,
The real estate market in San Diego is in a stall. How far she plunges before turning around is anyone's guess -- and we all hope the "airplane" doesn't hit the ground! I think there is more to lose on this end than there is to gain on that end. Although Puna prices were rising through 2006 and part of 2007, they were always ridiculously reasonable relative to California. Relative to Puna, California prices were hyper-inflated, and I don't think we will see that level of inflation again soon. My guess is that prices will return to 2001 levels or so and stay there for a good long while. So, a house that was worth $330 in 2001, and $725,000 at the heighth will go back down to $350 or so.
Prices in Puna will also go down (because they are almost entirely dependent on the mainland market), but they don't have as far down to go.
Here is hoping that irrational exuberance reigns again on the California side and that you make the jump before prices start to go up again on the Puna side!
One thing that could help is the proposal to permit Fannie Mae and Freddie Mac to guarantee loans over $417k -- most California homes are (or were) at that price point or above. That would ease restrictions on jumbo loans so we can resume, to some degree, the insanity we were experiencing before!
Gee -- someone tell me.....did I do anything crazy during my irrational exuberance....like buy another house??
The real estate market in San Diego is in a stall. How far she plunges before turning around is anyone's guess -- and we all hope the "airplane" doesn't hit the ground! I think there is more to lose on this end than there is to gain on that end. Although Puna prices were rising through 2006 and part of 2007, they were always ridiculously reasonable relative to California. Relative to Puna, California prices were hyper-inflated, and I don't think we will see that level of inflation again soon. My guess is that prices will return to 2001 levels or so and stay there for a good long while. So, a house that was worth $330 in 2001, and $725,000 at the heighth will go back down to $350 or so.
Prices in Puna will also go down (because they are almost entirely dependent on the mainland market), but they don't have as far down to go.
Here is hoping that irrational exuberance reigns again on the California side and that you make the jump before prices start to go up again on the Puna side!
One thing that could help is the proposal to permit Fannie Mae and Freddie Mac to guarantee loans over $417k -- most California homes are (or were) at that price point or above. That would ease restrictions on jumbo loans so we can resume, to some degree, the insanity we were experiencing before!
Gee -- someone tell me.....did I do anything crazy during my irrational exuberance....like buy another house??