“I’d call that unmet supply. Among people who wanted to buy in NCC and didn’t, many bought elsewhere”
Back in the late 90’s Encinitas and Carlsbad were the relief valve for those who worked in Sorrento Valley but didn’t want to pay the sky high LJ,RSF,CV,DM,SB prices. The major tradeoff was commute time. Over the following decade this trend continued and the quality of life in Encinitas and Carlsbad soared as did the relative values of the housing stock.
Unlike the more mature areas, many new houses were sold at the peak of the market to buyer’s with little or no skin in the game. These weak hands will have to be flushed no doubt about it. This flushing is leading to an over-correction to the downside making for some very attractive deals for those with the means to buy.
