I find it interesting that houses in “high end” areas are getting multiple offers in a few days because they have dropped in price two-three hundred thousand dollars. They’re still $1mm and just tract homes.

I have a house in Austin, TX that is about 4,000 sq. ft and in a nice area of town where the median income is just slightly below the median income for Carmel Valley. I have it for sale at $399K and have dropped the price nearly $40K since I listed it in December. I’ve had no serious offers and my house list price is well below competitor for sale homes. What’s more, Austin’s population is quickly growing and has a diverse job base including many high-tech companies.

The point of all this, is people who think they are getting a good deal in these “high-end” areas of San Diego are fooling themselves. This is just the first drop, next year those same houses will be another two-three thousand dollars below what they are selling for today.