We’re back! Fired up and ready to go after a great break up in the San Bernardino Mountains. It’s amazing that such a different and pristine environment is so close to so many in southern California. Within a two hour drive of about 12 million people. Being the real estate junkie I am, I could not help but notice that the pace of new construction remains strong in Lake Arrowhead (where we have a rustic and somewhat primitive little cabin). With few lots remaining and restrictions on the number of water meters issued each year, supply is very limited. It is also diverse, with properties for sale for as little as $250,000 (3 BR, 2 BA) to as much as $15 million (prime lakefront on 4 acres), all within a few miles of each other.
Regardless, it’s always great to be back home in San Diego. As this market adjusts, we should not lose sight of the fact that, although we are in a different physical environment than Lake Arrowhead, we still share a key characteristic…a limited amount of developable land for the future. This shortage of a finite resource will ensure long term stability and, indeed, a continued upward pressure on home prices, notwithstanding the current adjustment period.