I am bullish in the longer-term (5+ years). But not bullish for the next year.

Here’s why:
From an affordability perspective (monthly payment to income ratio), the San Diego market is less expensive today than almost any point in the past 30 years. We are also now below the average price to income over the past 30 years.

I can see prices going lower and perhaps 2-3 years before we experience 2008 prices again to the upside. But long-term trends tend to win out. So, if I had sufficient cash to deploy (which I don’t) I would buy a SFH each year starting this year for the next 5 years. Since I don’t have sufficient cash I will wait for a safer point. Perhaps late 2010, unless I too find myself in line at the local soup kitchen.