They are all very good points. However there is a rally going on and it is very frustrating. Yep all these measures will do is to prolong the secular downtrend. Which in reality is the objective here. As stupid as we like to think the government is, they know what they can and cannot do. All they want to do is slow things down. The rally IMO has is not confined to the low end. IMO it has spread to mid level homes in the 500-700k range as well. The high end is still getting simply crushed however.

Again, if you are looking to buy this spring it is as competitive as I have seen in a few years. Sit back and don’t look at things for awhile or come back next year and try again. Or… deal with it and compete. It is an extremely frustrating time for buyers and the best bet is to let this rally play out. I am hoping that by midsummer we will regain some normalcy. Those in waiting have unemployment and a large foreclosure pipeline. However the foreclosure pipeline will be mitigated partially by the public/private plan where those homes are essentially removed from the books of the banks by private investors backed by your tax money. Then those private investors get to sell and make a profit.

In the end… yes San Diego housing is still overpriced in a big way.