I think you’ve had a bit too much of the piggington Kool Aid. I would anticipate the effect being the opposite. The average San Diegan still thinks housing is a great investment, and a market that has dropped 15% in the last year combined with near record-low interest rates (particularly when the jumbos go conforming) is going to be too much to pass up.
I’m not saying inventory won’t rise, but I do believe it will be lower than if they didn’t cut.
