I have been wondering what would happen if the dollar collapses. A dollar collapse would make real estate much more affordable to international buyers. I live in Coronado where there is a high percentage of foreign ownership (based on what I have observed). Would this prop up certain highly desirable areas?
Without taking the former into consideration, I do not think you will see 10% drop in one area and 50% in another. There will be a difference, but I don’t think it will be that severe. There is a lot of big money here but there are also a lot of people who have really stretched themselves with their mortgage. If prices became that disassociated then people here might move out because the main consideration shifts from location to price. How do you justify living in Coronado when the price goes from twice as expensive to four times as expensive as other, good areas?
