There do appear to be a huge number of new (nouveau) rich homes in North County SD. Evidence to date suggests that prices will drop most for lower-income/starter homes, but this may be worth questioning:

1.) Everything has been overbuilt, but which categories (i.e. price) of homes have been overbuilt the most?

2.) A recent WSJ article showed that “high-interest loans” have been used much more broadly than previously suspected.

Interestingly, the peak year for these loans was 2006 (not 2005) and the ratio of loan value to proportion of loans changed as well, indicating that more expensive homes were being bought more often with these high interest loans.

3.) The collapse of jumbo loans adversely affects the “working rich” as much or more than the working class.

4.) The corrosive effect of market conditions (declining prices, softening economy, harsher lending standards) should tend to “work their way up” through the housing market, first affecting cheaper homes, and then more expensive.

So, will North County luxury look more like Las Vegas boom in a couple of years? Santaluz already has more for sale signs that Walmart after Christmas. What about Crosby, Carlsbad, etc.?

Rational expectations

Could you post the web site that lists these bank owned homes in Santa Luz?

The banks don’t own all those homes….It is just a list of all homes listed in Santa Luz.

Alex wrote:

http://beautifulcaliforniahomes.com/bank-owned-homes.html

Thanks that is the kind of site and information that I was looking for when I first wandered into Professor Piggington’s amazing Econo-Almanac ….. just for fun I am checking out Spring Valley where my sister the San Diego message therapist (typical, huh?) and I can see right away that she is in a highy dangerous elevated “REO zone.” Is there any way to figure out what the previous selling price was for these gems? Once again, thanks. I am definitely in the right place!

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

waterboy wrote

The banks don’t own all those homes….It is just a list of all homes listed in Santa Luz.

Then why, o water boy, does it tell you that they are all bank owned when you go to the site and register and everything? It certainly seems like the site sponsors are some kind of REO specialists?

Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace

Pert –

Many of the 919xx zip codes are in the red zone so to speak. Of course there are many many others in the red zone as well. In spring valley if one bought a home there in the last 3 years more then likely that home is worth less then it was at the time of purchase.

If you want to look at bank owned properties go to a website called http://www.reotrans.com as opposed to the other site mentioned in this thread. Also yes you can find the previous price for any home. Go to sdlookup.com. Or post it here and many a poster will help you out.

SD Realtor