I’ve been in San Diego since 1983 then moved away for a few years for school. But, no, I was not born and raised in San Diego.

A lot of people who bought a long time ago and don’t need to sell are fine. However, they are living in dated homes and can’t afford to fix them up, unless they pull equity out.

With the easy credit of the last few years, I wouldn’t be surprised to see many long time owners get in trouble because they refied money out of their homes to live the California lifestyle and to invest in more properties.

It’s not when you bought that’s important. It’s how much you owe and whether you can afford the monthly payments.

Leverage can amplify gains greatly but can also put otherwise well-to-do families in the poor house. See the colapse of the subprime hedge funds.

At the trough, I expect to see a lot of Del Mar,Solana Beach, La Jolla, Coronado, Point Loma, PB, OB, Bay Park properties come on the market. I don’t know that for sure, but I’m gonna sit back and watch the show.

We are only in the early stages of a downturn. Anyone who’s been around real estate cycles knows that the talk of recovery this early is ridiculous.