I think it’s also important to point out that not all San Diego is behaving the same. I watch La Jolla pretty closely, and I can tell you that there are no signs of a bottom there. Inventory is way up, sales are very low, and while many sellers are “holding out” a few motivated sellers are smashing the comps in big ways. So, while there might be a bottom in outlying areas where banks are unloading foreclosed properties, I don’t think there are any signs of a bottom in higher priced areas yet.
