San Diego Housing Bubble News and Analysis

I read an article in my wife's "Healthy Living" magazine recently that claimed stents are bad news. There was no proof that they worked better than drugs alone and some evidence that they are dangerous. That may have something to do with it.

Stents, particularly the new-fangled drug coated variety, have gotten some bad press over the past few years. I've been tuned in because my uncle has one and my girl is in the med device industry. Stent sales are way off and I believe Abbott was looking to score big in the drug-coated stent category. Their new stent just got approved by an FDA panel (but not the by FDA, not yet).

ouch.. to add insult to injury. I have to say that I am a bit surprised that this type of business would lay off.

700 households in Temecula. That is 700 more homes that probably can no longer afford their mortgage. Wow. If this layoff stuff starts developing into a trend we are in for a real bruising.

Was abbott only the "big company" over there ?? Or any more companies are there..

eeeps, 700 more house on the market. That ain't good.

Abbott is 2nd behind Pechanga (5000 vs 4000 I believe).

For the longest time the bulls have held to the notion that employment and spending were strong, therefore the housing market couldn't collapse, just correct. This is a small story in a small town but one that will be played over and over in many places as consumption declines (so sayeth brother Roubini). The last life preserver the housing bulls will have will be interest rates.

As far as Temecula goes, Abbot is a huge employer, 100k people and 4500 employees, that's gonna sting not only the 700 but the remaining employees will be nervous spenders.

NEWS FLASH: Yes, the Abbott layoff will hurt, but most people in Temecula work in SD or other parts of the IE, even OC.

Trust me on this one...

Most of the Abbott jobs at Abbott are assembly type jobs (I think), overall not the high paying variety needed to support the Temecula lifestyle. But for many families that's enough to send them over the edge financially.

Also, I would not be so quick to give up on stent technology - it could save your life one day and help in avoiding full on open heart surgery.

I for one am not ready to give up on stents and I am sure they will continue to improve.

"overall not the high paying variety needed to support the Temecula lifestyle."

Oh my God...Temecula has a lifestyle that can only be supported by high paying jobs??? Certainly, Satan has had a hand in this cruel joke, known as the housing bubble;-)

For the IT industry, Abbott is the only 'big company' in Temecula.

I work as a business analyst in Information Technology, and in March I accepted a contractor position with Abbott 'with the possibility of being converted to full-time employee'. Part of the reason that I moved from OC to Murrieta was the hope that I could afford a house(as a single person) after I landed a FTE position.

There are a lot of IT folks there 'paying their dues' in an effort to get a permanent position - working in a temporary trailer, sitting 2 to a cubicle (in the temporary trailer).

In June, Abbott announced a 'change in direction' and started letting go some contractors, including me. No worries, I found a better (FTE) job in Carmel Valley. And someday my housing dollars will go to San Diego (where I lived almost 9 years before my 6 months in OC).

Many of the Abbott IT folks already own/want to own in Temecula - you're right about being nervous spenders...

This is my first post after lurking for a couple months. Thanks - I've learned so much from reading here.

dumbled0ry

Yes, the Temecula lifestyle comment was a joke...

I am in IT and unless I was completely 150% desperate I would not accept one of those contract to hire positions (or similar). Problem is, IT became flooded with workers and companies have been able to turn IT workers into a commodity unlike any other gray collar job.

I was offered a contract job with SDGE and I turned them down flat - it's FTE or nothing (at this point in time anyway).

Well, the Temecula lifestyle was a joke - sort of...

I have a six figure income and don't have a lot of money left over at the end of the month and I am a tightwad.

paramount- same here...100K plus doesn't go very far here in socal does it?

Not with temecula houses selling for 600k when the very same house was 100k back in 2001. lol

100k not much for San Diego

Maybe 250k would be decent income with overpriced housing costs. Now in the midwest 100k is decent. I am doing contract work but notice companies in San Diego are STINGY CHEAP with salaries considering high cost to live here.

Jobs in IT pay WAY more in NYC and San Francisco and cost of living is almost same unless you live in Manhatten and you dont need a car.

Not my case at all - I paid in the mid 2's.

What lendingbubble said is exactly the case: So Cal is expensive even if you do live in Temecula.

not the high paying variety needed to support the Temecula lifestyle....

Yes, I remember that show they did on Temecula, Lifestyles of the Rich & Famous, Champagne dreams.......

I think I remember that episode - it featured William Shatner's crib as I recall...