Just up there last weekend, went to a couple of open houses, talked to the realtors. Prices east of the 5 have already come down a bit. One realtor confided that she put someone in a townhome in her development for 200+k less than her own home cost. Not what it was worth, what it cost her in 05 I think.
The second realtor I talked to mused out loud whether she should sell her DM rental properties as they were on 5 year ARMS. I didn’t choke or anything, I just said yep, you’ve got about a year.
Del Mar will come down, just like every place else. It was just as nice in the last downturn as it is this time. Availability of credit will kill it. Yes there are all cash buyers. Yep there are even people who are immune to the downturn, but not enough. Not every place in Del Mar is a Taj Mahal. Lots of little condos and town-homes and 1920’s bungalows.
The window of opportunity will probably be smallest there, since it is close to jobs, but if Del Mar is going to defy economic gravity I’ll be just as happy in Mission Hills.
