Dont see a rapidly rising interest rate situation just yet. Someday but not imminent.

Examine your grocery bill from last year and the year before and you are already being victimized by inflation. Pretty much any basic foodstuff has increased in price and not by a trivial amount. Go look at your sdge bill and/or your wastewater treatment bill (water) and you will see your rates have also gone up compared to years past. It is also likely that soon you will be paying an increased state tax and/or sales tax.

I am sure we will soon have a predict the next year of housing price movement but as a preview, I read an interesting piece by JTR on his site and am inclined to agree. I think that the continued improvement in the employment situation in San Diego will simply provide further stability to certain submarkets. Combine this with the manipulation of inventory through lender shenanigans such as pricipal reductions, loan modifications, and even reo rental programs, it is very unlikely we will see large depreciation occur. I would even venture to say that we could see modest appreciation in CERTAIN markets. These markets include the usual more desired areas that mainstreamers like which have good school districts. Places like the I15 corridor as well as north county coastal.