What prompted you to say “Sequestration appears likely” ?

Sequestration is reality. I work for the Navy as a contractor and at a recent meeting a representative from SPAWAR confirmed furloughs will begin April 1. This will effect government employees (GS). They’ll be furloughed approx 20% (1 day a week).

Here’s what I notice at our base; the government switched from GS employees to contractors some time ago. Most employees now are contractors, and depending on their contract they may or may not be let go.

The GS folks are mostly older and/or Navy retirees who got hired on after retirement. They bought their houses when they were affordable.

Contractors are either very young renters or have young families that live in places like Temecula, Marietta and Escondido.

I don’t see sequestration having an effect on real estate sales in San Diego.