I also want to add my 2 cents… There is still so much builder land in the hands of builders! Look at the huge swaths of homes going up, lots being prepared from Carmel Valley to San Marcos! While you are right that some of the developers (Pardee) bought these properties for a tiny fraction of what they are worth today, the current prices for these tiny plots has lost all grips with the fundamentals.
The builders aren’t even building right now, they are doing 1 at a time to not show how many vacant lots (all from 1-14 miles from the beach) are still sitting there.
There is a ton more properties than people who want them. The suckers have bought at the top (no offense suckers – I was one of you but got out even) and the property prices will still go down.
The funny thing is that the Realtors keep lying about the supply and demand. People leave San Diego in droves because they can’t afford the cost of living. We have a HUGE impediment to future business and services because of the high cost of real estate. Everyone isn’t flocking to San Diego (other than the rich) – compare our housing prices to the rest of the country. In NYC salaries are huge compared to here – so we have higher home prices and lower salaries – not a prescription for growth.
p.s. Have you driven out the 56 only 3-5 miles from the beach??? It’s the real estate graveyard tour! Free kitchens for every sucker!
