San Diego Housing Bubble News and Analysis

I think the media may be partly to blame. However, to their credit this problem has been mentioned many times, but you only get to hear it if you tune into to broadcasts by people like Glen Beck, or read certain broadsheets. But I admit it is does seem weird that the issue is so understated, but perhaps it's because it's so obvious, at least to some.

I feel your pain, man.

There are thousands upon thousands of qualified, first-time buyers with stable income, good credit (and maybe even a down payment!) that are simply priced out of the current market.

The problem is that there are a record amount of home-owners (debtors) thanks to the easy lending standards of the past. So the majority are going to be losers in a nationwide housing slump.

Btw, Americans will lose *trillions* in equity before this is all over.

It really really frustrates me. You act responsible, don't get yourself into debt up to your eyeballs, don't buy a house you obviously could not afford, and you end up getting screwed for it. Man I hate this situation. I can only hope we see a significant adjustment in the coming years. Hopefully the economy stays SOMEWHAT okay so that those of us that wait will still have a JOB at the end of the day.

The key is downpayment. The lack of a downpayment and stated income loans is what drove prices up. This enabled unemployed delinquents and speculators to just make bids and purchase property with reckless abandon. Now that downpayments and documentation of income are required, demand has of course gone to zero and prices will reset to 2001 levels (i.e. correction of the 2003 Real estate peak cycle). The appreciation from 2003-2005 is pure vapor and shouldn't even exist absent loose lending.

Did anyone else read the story in this morning's UT that reported SD is now out of the top 10 least affordable cities in the U.S.? We are now number 16. It's hard to believe.

And yet, people are still buying. I just saw a house I was eyeing, just to see how it depreciates, and now it's pending. I cringe every time I see a house go "Pending", granted some of these do fall out of pending, but some don't. These are the people that are making the market stabilize at a much slower pace.

I heard for the first time in mainstream media some lady on CNBC yesterday say dropping prices are a good thing, because people will actually be able to afford homes.

All the billions in equity you hear people lamenting about homeowners losing was never even their money in the first place. The fact is not everyone can own a home, and there's still a significant correction underway. Since it's a hot political topic though, politician's will pretend to care until a more pressing issue surfaces.

If Congress wants to help, they can take a pay cut and bail out their constituents out of their own pension.

Yes I'm in shock that anyone can justify buying a home now, regardless of their situation (kids, stability, I just like the home, whatever). I'm sure the kids would like it better if you spent that $50k on toys than on depreciation over the next couple months. Sheesh. That's college tuition right there. That's private school money. That's a new Lexus.. that's... thats... my god I'm rambling.

I did see that SD placed 16 on affordability, and I saw that they tied Detroit... DETROIT! For 3rd place in falling RE prices.

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For every responsible renter with enough money to buy a house (even at pre-bubble prices) there are five homeowners who stand to lose tons of money if house values go down.