I have a question for the SDrealtors. The spike you are referring to, are those new homes?? I found this quote in a John Mauldin weekly letter about calling a bottom in the housing market.
“There is a problem though, and that is the recently enacted housing bill eliminated seller-funded down payments, and this was 17% of new home sales. Watch for a rise in the number of new homes sold in September, as the new law does not take effect until October. Home builders will be telling people to buy now before this ability to help with the down payment goes away. But cheerleaders on TV will be telling us the market has turned. They won’t be saying that in November.”
So I’m a little skeptical on this spike in sales. You could be pulling future demand into the month of Sept and if that is true the balance of the year is going to be dismal.
Methinks it is still premature to make a conclusion on high end So Cal just yet. If you haven’t noticed we are in THE MIDDLE of a very severe financial crisis. We still do not know the true impact on Main Street. The old timers that I work with in my industry are telling me they have never seen anything like what we are going through right now. Roubini who basically has been elevated from crazy permabear to Savant is predicting a 12 to 18 month recession if we are lucky.
“As for the high earners in San Diego, they dont typically work for large local employers. SD has never been home to major corps like other large metros are. This makes it a more piecemeal process for high wage earners to succumb.’
sdrealtor, the same was true in 2000.
Regarding the future bailouts directly in the housing market here is a video of Roger Altman former Deputy Treasury Secretary on CNBC last night
Basically he is saying that trying to put a floor in the housing market will be highly difficult and highly unlikely due to the financial magnitude being beyond what the system could do.
