Some troubling observations from a friend who spent some time recently looking at real estate in Santa Barbara, CA:
- Visited Santa Barbara to look at housing. Hospital there can’t attract GPs because the MD’s can’t afford to live there. The hospital is building townhomes to subsidize physician/nurse income. Seriously.
- Random assortment of regular MBA/VP friends seem to be moving into jobs with higher salaries now: $500k-1M.
- Tried to rent a 2000sf house for $6750/mo in Santa Monica. Called second day of listing…already leased at $1000/mo over asking (sight-unseen).
- Even the overpriced stuff is moving in Santa Monica. >2007 prices.
And to add a minor but entertaining data point to this, I was in Aspen this week and overheard two rich mega-rich dudes at Peaches cafe complaining that property one had bought cash four years ago for $32-million was now worth only $25-million — “tops!”.
What are you seeing in your area?
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