Unfortunately though the rationale about there being a limited buyer pool, is something that I kind of laugh at. Years ago this business has taught me that that is definitely not the case. Regulars who post here who are engineers, or other professionals simply do not see the variety of people that are looking for homes. You associate with your peers, friends and coworkers and that by no means represents even a fraction of people who are looking for newer homes in good schools in San Diego. So it is very easy to post and say yes there are only so many buyers and they will all be used up. Variation is sales numbers is generally not due to lack of buyers but moreover buyer psychology. Do you really think that when sales were down in 2008 all the buyers just dried up? Of course not but the psychology was panic. So many buyers held off while some saw the opportunity and grabbed it.
It takes a heck of alot of nads to buy when there is a panic mentality. Certainly those who bought at the end of 2008 had the insight to believe more risk was washed away then there was ahead of them. They realized it was not a bottom but was sufficient enough.
So I definitely think the thoughts about a limited number of buyers is not really applicable to this type of housing nor is it important as there will always be buyers. What is important is the psychology which will be displayed in sales numbers.
