“There is no question that there are a growing number of people who eventually plan on buying a SFH in San Diego but are waiting for the right time.”

Yes that is true….but that number is not that great compared to the number of people that jumped into the market before they should have. One of the effects of the extreme lax lending is that it pulled future demand into the market. I used to work in an industry where the company that I worked for would put together huge year end deals to meet the revenue and profit targets it communicated to the street. It’s a horrible way of doing business. We would offer my distributors money off and 180 days dating if they took in our product in December. So the distributors would calculate how much floor space they had available and if they need some type of temporary storage, they would calculate their projected sales through the first 180 days of the year and order that amount. It was GREAT seeing that December number of shipments. The only problem is that by the end of the first quarter of the following year Mgmt would be on the phone…..Where are the orders?? Well we pulled the first half of the years demand into Dec so there’s hardly anything above and beyond that we can ship now……I hated working for that company. The same thing has happened in housing, yes there is demand accumulating on the sidelines but the easy credit of 2003 – 06 pulled in a whole lot of future demand.