I don't think people looking for deals will be disappointed. I think one thing to keep in mind though is that while primary home owners might to some extent be somewhat bailed out, isn't there the gamut of speculators/flippers that is still out there? Isn't SD a market that was highly speculative? If so, we should see some fallout, because I don't think those efforts to raise conforming limits etc are really going to help the speculators, save perhaps refinancing their own home to bridge over to their speculation, which would be a baffoon move… So I wouldn't say all is lost here. How that shakes out, heck knows. But something 's going to shake out. The 90ies RE recession I remember the worst got hit were the speculators and people who couldn't hold on. You still going to have a percentage of those people. Add in a Democratic Government win and a reduction of the defense spending following that, so cal economy will go into the crapper. Happened in the 90ies, and frankly the industry here isn't as diverse as one would think. We haven't seen nothing yet compared to the 90ies. You have people barely making it while still have relatively high employment. Wait to the effect of unemployment. Suddenly all the folks barely scrape by will now be in trouble. Doesn't matter how low you could refinance..If you don't got employment, you're still screwed…..Personally, I'm not looking forward to that if it happens..because it will be ugly.. But the defense spending days are numbered, i'm afraid. This is probably lousy advice..but folks that are I know that are working in the defense/gov sector…I'm telling them to get out now while they can. Ask any aerospace/defense engineer from the 80ies/90ies, and they'll have interesting stories to tell you. (like my pops).
