“Price is what you pay. Value is what you get.” – Warren Buffett
We are definitely experiencing elevated inflationary times that affect everything from the cost of our local Roberto’s burrito to our LVMH purchases, and more specifically for today’s blog, the real estate prices here in San Diego county.
When the supply is limited in comparison to the demand, prices soar. Inflation on everything from the essentials to the luxuries is extreme and the Luxe-Flation we are seeing goes well beyond rising costs as the audience who buys in this sector has grown and is wealthier than ever.
Where there is demand, there is an opportunity, and free markets allow for price increases based on what the customer is willing to pay. There will always be moments of price dips in real estate, however, over the long term, I see luxury home pricing continuing its upward trajectory.