SDR it’s good and it’s overdue but now that it has started it will spread, it’s the invisible hand at work. I should have paid more attention in my economics classes but Adam Smith’s theories still hold true a few hundred years later. You may not want that house in Esco or condo in La Costa but one of you competitors for Old Scripps will, thus reducing the demand for your market, and less demand results in lower prices. I’ve skipped a couple of communities, the esco home isn’t in competition with Scripps, there are a few communities in between but you get the point.

The best analogy I’ve heard is the line at a brothel. Imagine there are ten prostitutes working at a brothel and on a scale of 1-10 there is a woman working whose beauty could be scored from 1-10, with one woman representing each rating. The price is $10 multiplied by the number of men in line when it’s your turn (2 people in line=$20, 30 people in line=$300) You are in the line for the woman who is a ten, along with 50 other guys, there are ten guys in line for the 5 and nobody is in line for the 1. At some point one of the guys in the line for the 3 decides he will just switch to the 1 and wait less and pay less, then another switches from the 4 line to the 2. Ultimately there is no waiting at many of the lines rated 7 and under and the line you are in starts to fall apart, with guys switching to all sorts of lines. You can downgrade and wait/pay less or hold your ground and still wait/pay less since 30 or 40 guys got out of your line and nobody is getting in line behind you, you still wait longer but you benefit from the impatience and frugality of others.

Get it now, economics and markets can always be simplified buy using analogies involving women, alcohol or gambling, because when you boil it down that’s what we understand.