It would now appear that the real estate market as a whole (not just San Diego) is experiencing a correction/decline.

So, you expect Rich to report on Florida, or the whole US, or how about Europe and China? I believe Rich’s claim was that there is a housing bubble in Southern California (not San Diego). For someone who has read the site for two years, you should have known that.

It’s easy to predict something like housing prices or the stock market will decline.

Really? That is a ridiculous statement. No one can predict when a mania will end, but yes we know it will end. It isn’t just because a broken clock is right twice a day, either. It is because we have identified a current mania (or bubble). Apparently you don’t see it for what it is yet.

…you missed a huge run up in the value of what would now be your home.

Exactly why you don’t get it. You are worrying over 2 years of what you think are lost opportunity. Do you understand why home loans are traditionally 30 years long? It is because a house purchase isn’t a 2 year commitment (er, I mean flip).

Rents will rise as owners have to make higher payments and more people will rent because they can’t afford to buy or choose not to until prices correct. This will aide in the softening of any potential landings.

Good luck with that theory. Yes, owners will need to make higher payments, but renters aren’t going to be footing the bill. Renters can pick up and move overnight. People will live in cars before they pay some other idiot’s mortgage. You forget that renters have no obligation to pay anything to anyone.