I wish I understood economics better..and whether government intervention could change this course, but if one
reviews past housing bubbles…we are not at bottom at all.
Some have said that all areas are connected, therefore, no area of SD has hit bottom. Too many homes, overbuilt areas and no one to afford them and I personally do not think the majority of median households have $80K for a downpayment.
It would appear homes could fall another 20% within the next 12 months, as the credit crunch will worsen through 2008.
Does anyone know if there anything the government could do to stop the trend and artificially prop up the prices? It would seem not since the economy is floundering …and now the reports from Washington are no longer “we are watching this…” but rather a “deepening” recession.
A homebuyer who doesn’t care if their money appreciates could buy and hold a home now. But because of the taxes and additional costs, it would probably end up being less than a break even investment –through 2015 (in most areas).
But I am thinking only intuitively, trying to assimulate all the info.
There are resets still ahead. This was just the first year and look at the collapse.
This 1955 built ranch 1500 sf (fixer) on 1/2 acre in Bonita…which was on SDLookup for about 5 days, now “sold.” MLS 081024951
4248 Acacia Ave
Bonita, CA 91902
Status: Sale Pending
Price: $349,900
