[quote=flu]I do have one prediction. We are going to see defense budgets shrink…And that’s going to end up spoiling the economic recovery in Southern California…The Northern CA economy will probably do better than us SoCal for the next few years.[/quote]
I have been giving this serious thought over the past six months and wondering what the impact will be on home prices in coastal SD (west of 5 in PB, OB, Solana Beach, Del Mar).
I do know when the defense budget was significantly scaled back here (in the early 90’s I think), it had a profoundly negative impact on house prices, even in the coastal neighborhoods.
Is the defense budget going to have a direct and negative impact on employment here and what percentage (in unemployment terms) would this look like?
Any predictions what’s going to happen to house valuations this time around? Down another 10%, 20% 30%, or nominal impact?
