I think credit is one part of it, but I think if that was the primary cause then the results would be more evenly demonstrated in every other market in the U.S.. All areas of the country have equal availability to these credit terms and yet many of these other markets have not (so far) demonstrated such outsized gains.
What’s interesting is watching the investors migrate from market to market. San Diego was hot but now these guys have moved on – first to Arizona, Las Vegas and Florida; and now on to Seattle and some of the smaller markets in the Midwest and the South. They’re trying to keep the ball in play and as long as they can do that there’s a lot of money to be made.
