Walter Mencken 11 a.m., Nov. 27
- Community Blog
Life in downtown San Diego
The Padres did not lose.
"San Diego County home prices dropped a whopping 26 percent in August, compared to the same month last year. The median price of a home in the region was 350-thousand dollars, down from 475-thousand dollars in August 2007. Home sales rose by one-point-four percent. "
The above information is a portent of things to come. Our economy is a mess. Some people are getting very panicky about the situation as they have money in children's college funds, IRA's, investment portfolios, etc. Right now all of these have probably lost some value.
The really surprising thing about housing in San Diego is that the downtown, high rise condos, are still priced well above what a typical San Diegan can afford. The most recent information regarding median income puts zip code 92101 at $28,611. Cost of living index is 139%. So, those of us who live downtown are living well above our income. With the over-building of condos, they just are not selling. Just watch the advertising. There are all sorts of gimics, from free TVs to free upgrades, to special incentives. Wander around at night and look at these buildings. Maybe 20% have lights on. Of course there may be some vampires living in the dark. Seems that eventually, the walls will come tumbling down. How long can these developers hang on before the prices must come down?? Nearly empty buildings cannot be good for anyone. I am going to ask my question over & over until someone at the City or CCDC gives me an answer on owner occupied condos.
Apparently, gas prices have forced most businesses to increase prices. Some are just increasing prices and some are adding a gas surcharge. My question is, at what point do they remove that surcharge?? And you know, once prices go up, they rarely go down. If gas were to suddenly drop to $1/gallon, how long would it take for Von's or Ralph's grocery delivery to go back to $9.95? They both have added $3 to their delivery charge. That is only one small example.
And what about rents? Downtown residents pay way too much for very small apartments. Even the alleged government subsidised places are expensive. Some complexes raise the rents on a regular (usually yearly) basis. This is not based on reality, but rather the good old corporate greed. When prices take a tumble do you honestly believe that any landlord will lower the rent? I have lived here a long time and have never seen that happen. I can always hope.