[Dean's World] Scott Kirwin: Southern California Real Estate

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Posted by Scott Kirwin:
Southern California Real Estate
http://www.deanesmay.com/posts/1189566100.shtml


   As [1]I mentioned earlier the family spent a few days in Southern
   California visiting the Marine. During our stay we did some sniffing
   around the real estate market and as expected the market isn't doing
   too well these days.

   One agent of new homes had crossed out the prices on the brochures and
   wrote in numbers that were 20% less than the printed originals. Even
   odder was his statement that if we landed the mortgage, we could
   pretty much name our own price. He was either a very slick salesman or
   the market is in serious trouble in Temecula.

   One thing I couldn't help but notice however, is the amount of land -
   and the quality of the land - covered with commercial buildings. For
   example, the Marine lives outside of San Clemente, and on a mesa
   nearby there is a U-Store it company, numerous empty corporate
   offices, and a non-profit animal shelter. All these buildings were
   new, spacious and offered a stunning view of nearby Camp Pendleton.

   Meanwhile the single family homes on the next mesa were 3,000 sq ft
   homes packed side-by-side and selling from "the low $1,000,000's." I
   couldn't help but think that something seriously wacky was going on.

   It wasn't just in San Clemente; I saw the same thing in Riverside and
   San Diego counties as well. You would think that if land was expensive
   then establishments like car dealerships, warehouses and other
   businesses that need a lot of land to function would be forced
   elsewhere. But there they were - near tiny homes that sold for
   millions.

   Plus there are a lot of strip malls with large spaces filled with
   businesses that couldn't possibly afford the overhead - if the real
   estate market was functioning freely and openly. A quick Google search
   for San Clemente found office space renting for less than a $1/sq
   foot. I couldn't come up with sales numbers without submitting direct
   queries, but that strikes me as pretty cheap compared to the home
   market.

   So what gives? Any ideas? Anyone? Anyone? Bueller?

References

   1. http://www.deanesmay.com/posts/1189383894.shtml