What you are seeing is correct. The people that talk about forclosures and prices spiraling down are pointing to south east and south San Diego. Areas like Carlsbad, Carmel Valley, Scripps are still selling homes at or above asking. There still seems to be a slew of people with money who are buying.

Some people see a positive when they hear a 5% drop in price but to me that is a crock. A home that went up from $200k to $800k then dropped to $750k is not a drop at all. It is still priced 400% more than what its worth. Some people look at that $750 and think they’re getting a deal. You look at pigginton members and see that most are realists, but for everyone that agrees with the members here there are people that disagree. For every blog or website that predicts gloom in real estate there is a blog and website that predicts blue skies ahead. Sitting on the sideline and waiting is only going to get most people an ulcer. One month RE will be down 5%, the next month it will be back up etc…

The rule of thumb with common economics is if you can afford it then buy it. If you have to stretch to your last penny then reevaluate where you live and what your needs are.