Many of you who read this blog already know that Kris likes to irritate me by accusing me from time to time of being too nice or giving the benefit of the doubt to people who may not deserve it. She calls me Pollyanna, which really means, “Steve, get a grip!” But I am really having a Pollyanna moment right now. Actually, it’s lasted for the past 24 hours ( A Pollyanna Day?). It started yesterday at sunset. I was sitting in my backyard and due to the Santa Ana conditions we are having the sky was crystal clear, and the view was all the way to the coast. The water was shimmering in the late afternoon sun. Now, to fully appreciate this day, you would need to know that I do not live at the beach. In fact, I’m about 15 miles away. THAT’S how clear it was. I could stand up and see the hills of Tijuana. Yes, that would be Mexico, 40 miles away. But here is the clincher. It’s December 2 and the temperature was 74 degrees at 4:00 pm. Do I say this to brag while most of the rest of the country has just suffered through it’s first winter storm of the season? Am I just reveling in the Chargers victory today in Buffalo, where the temperature at the start of the game was 34 degrees and dropping as the snow started to fall? No and No! It’s because I feel blessed, and yes, it’s also because of the Bubbleheads.
It is hard to place a value on the fact that the temperature today, December 3rd (like yesterday and the day before) is 74 degrees and that it is forecast to be sunny, clear and 74 degrees for the next five days. This is where the Bubbleheads lose it. Real Estate, like all markets has shifts. It has been so long since we have had a downward shift in values that some people (i.e., Bubbleheads) think it’s Armageddon. What about the oil market? It was $78 per barrel just 2 months ago, then it went to $57, then rebounded up to $63. Did the oil market bubble burst? No way. Has the demand for oil dried up? Of course not. Did it get too pricey for the market? You bet. And so did the cost of a home in San Diego. This is called “volatility”.
What is hard for the Bubbleheads to understand is that San Diego has the best year round climate of any major city in the world. It’s a tangilble, intangible, if you will, that people will always pay a premium for. It’s also why there will always be a demand for homes here. Now, it’s 4:30 pm, so I gotta go outside and check out another fabulous San Diego December sunset. Priceless!