Well, how in heck can anyone afford a home in San Diego without these goofy loans? Isn’t that what kept the party going? What do you suppose will happen if/when lenders require 20% down and fixed rated for any purchase? How many San Diegans have 200 thousands dollars for a downpayment?

I don’t see asking prices coming down in my South Park neighborhood, where the average cottage costs 650,000. Longer days on the market, but eventually somebody pays these exorbitant prices. I doubt they’re using much in the way of downpayment. One of my colleagues just made an offer on a 650, 000 dollar condo (doesn’t even have a garage). They only have about 5 grand to use as a down payment. OF COURSE they will use an adjustable. There’s no other way to afford it!