I think there already is some must sell inventory in Coronado. At least there are some very nervous sellers at this point. A friend of mine recently met with her accountant and commented about all of the construction in progress on the island. He pointed out that many of these people would be unable to afford or secure financing after the contruction loans end. I can believe that since I just went through the $1M+ loan application process. The level of scrutiny and terms currently in place in the lending market is enough to tank this market. I started a thread about this very subject a couple of weeks ago. Spend $19 for a month of access on Melissadata.com and take a look at the sizes and terms of mortages that were taken out on purchases in the past few years in 92118. It is staggering. Couple that with a slow leak in the bubble pricing and imagine these “owners” trying to pretend it’s just the cool ocean breeze they’re feeling. I’m anxious to buy here and I was recently really tempted but I decided to continue to wait it out.
