I realize CV is a more desirable location, but at some point isn’t the lack of liquidity in the mortgage markets going to start hurting sales. Higher income folks, yes, but jumbo rates are relatively high and credit standards are toughening. Once more and more folks have to sell, i.e., job transfers, divorces, etc., there might be willing knife catchers but the qualified buyers would seem to be less. More and more supply over time, but at least in this credit environment, less qualified buyers. Increasing inventories should eventually lead to prices coming down, right? Have you guys/gals gone to http://www.beaconecon.com and checked out the latest posting of the economist Dr. Christopher Thornberg. He was at UCLA and started his own forecasting firm. He has some recent SD specific presentations on his website. He is predicting prices will bottom out in Q3 of 2010, with peak to trough declines of 38%.
