I think it easy to predict what happens next for San Diego.

Unemployment rates climb ABOVE 10% during the next 12-18 months of recession.

So to the existing ramp-up in foreclosures due to subprime resets (and also well-employed homeowners walking away from upside-down mortgages), we now have the middle and upper-middle class losing their jobs. So we’ll finally see the previously strong upper-middle class real estate areas (Ex.: Carmel Valley) now lose significant value, but that could take twelve to eighteen months.

This analysis ignores the likely intervention of our government in writing down mortgages, as our government is now the major residential mortgage holder.