Alex, the problem that I have is understanding what exactly has happened the past 7 years to drive prices west of the 5 in an area like Carlsbad up 150%+. Seriously, in 2000 I could have bought a home in S.Carlsbad west of the 5 for 300k. That same home is now 900k. In 2000, there really wasn’t much more land left to build on west of the 5 either. Has San Diego’s economy fundamentally changed since 2000? One thing that I am certain has changed is that we went through a period of rampant speculation driven by easy money and low interest rates, roughly during that same time period. To make the case that prices will not drop, you need to understand how they got to where they are. Convince me that current prices west of the 5 are in line with the fundamentals and I will agree with you that they will not fall.
