The presidential candidate already had a very nice coastal home near UCSD in the San Diego area but this article informs us that he plans to build an even larger, more elegant home at the same spot. Mr. Romney is getting ready to invest millions in coastal Southern California. I take this to be a good sign of his optimism about our region --- or at least certain neighborhoods in our region.
The typical metropolitan price index such as the Case-Shiller implicitly assumes that a large geographical area such as Los Angeles or San Diego features no within area variation in price dynamics. During the recent slump, have coastal homes preserved their value relative to inland homes? Consider the 90402 zip code, according to Zillow --- the 90402 zip code's average price peaked at $2.5 million per home in 2008 and now stands at roughly $2 million.
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