Actually, I’d say that the real estate industry is just as important to San Diego as the auto industry is to Detroit. The reason that you won’t see homes in the nicest neighborhoods (like La Jolla or Rancho Santa Fe) selling for $130,000 (as in the above example from Detroit) is two-fold. First, we’re starting from a MUCH higher price plateau so there’s much farther to fall. Second, the market for San Diego real estate is much larger than Detroit’s. As San Diego’s real estate falls there will people from all over the country watching; San Diego will draw buyers from a much larger geographic pool. Detroit, today at least, does not have that level of widespread attraction. Hopefully at least you’ll be able to buy 1200 square feet in Chula Vista for $130,000 within a few years – that would not be out of line.
