[quote=Escoguy]Even if 20-30% of these employees actually left San Diego, one can assume the ownership ratio is somewhat higher than the general population but at most a few hundred homes would come on the market and these wouldn’t be distressed sales. So best case for buyers, there may be a little more inventory.
As inventory is so low, one can only think this would be a small step to normalization but far from the basis for any larger correction.[/quote]
I think it’s important to also keep in mind the psychological impact on the employees who do remain. All of them will now be much less secure in their jobs, and so less likely to buy a house. While I won’t make any claims that this will cause a housing collapse, I don’t think you should dismiss this as being negligible.
