Everyone is aware SD median price has declined ~6% from its peak from ~18-24 months ago. That’s the whole point – it is such a small decline over an almost 2 year period. Such a tiny decline does not portend the huge declines you predict.
Expensive areas LED the price declines last time. LA Times article noted Bev Hills experienced a 40% decline from 1989 to 1993. If housing market is so bad as you say why such a tiny median decline this time (at least in SD…in LA median is STILL increasing).
You would expect to see something much larger than 6% after almost 2 years from the peak!
Not only are expensive areas not decreasing now they are still increasing and sales are robust. This is a major difference is this r/e cycle from the 90s. Plus the economy is still relatively strong and unemployment low. Doom and gloom 50% median price declines for typical sfrs in this r/e cycle in SoCal will NOT occur.
50% decline is not gonna’ happen in SoCal due to demand and limited supply. (In FL different story; we’ve already seen 50% decline in Ft Myers tract housing project)
