Josh I can pick plenty of REO properties that are unaffordable.
Yes distress does lead to affordability. That is not what I was disagreeing with. Yet if you think you will get your home in Del Mar at what you may deem affordable, you are mistaken. That is the point I was trying to make.
Point number 2, distress also happens when people bought homes who should not have bought homes. What is affordable to some is not affordable to others. People are defaulting on 200k condos just as well as 2M dollar homes. Distress happens moreso because of that then anything else. Now a phenomenah of people handing in their keys because the asset has depreciated so much is a different issue altogether.
My disagreement with you is not that distress doesn’t bredd lower pricing because it does as long AS THERE IS LACK OF DEMAND. However my point of disagreement is you will not find your home in Del Mar because even with distress in Del Mar and depreciation in Del Mar (which will happen by the way), unless you want to live on Mango or on Del Mar Heights, pricing will always be unrealistic based on other areas. Will it go down? Yes. Will it be affordable? Perhaps if you make a couple hundred large a year and have a nice fat down payment ready.
Sadly there are just some places in San Diego that will be unattainable for people even after the depreciation cycle. That is the point I was making.
