Good link little_lady. We’ll see how homeowners who bought in 2005 begin the handle the resets.

I see so many resales by owners who have owned less than 2 years.

By the fall, we’ll really see the direction of this market and whether it’s really “different this time.” I’m giving the bulls the benefit of the doubt on “it’s different this time” until October. If the market doesn’t plateau as the bulls surmised, then chances are we’ll see a repeat of the 1990s downturn, in proportion to the recent boom.

The Downtown San Diego market is fascinating to watch because it was virtually all built on the boom. If prices drop to 2000 levels then virtually all the Downtown units will be underwater. That will forever obviate the thinking that “you should get in on the ground floor.” Other neighborhoods such as Liberty Station and post 2000 master-planned communities might be similarly affected. It will also reinforce the fact the wise course of action in new development is to buy-and-flip.

I’m looking forward to the autumn leaves. The falling leaves drift by my window. The autumn leaves of red and gold….