IMHO: 50%-70% by the time it hits bottom. There’s already a ton of inventory out there and it’s going to grow even more as the foreclosures continue, ARM’s reset and people who have to sell due to job loss in a weakening economy lose their jobs, etc. You just can’t have that much inventory without it severely attacking prices. Six months ago, when I first came on this board, I posted that I thought Temecula would fall like a rock and fall long before San Diego. Then it would creep down into areas closer to SD and then into the expensive, more desirable areas. (I’m talking single family homes: not condo’s) They were a sure bet to fall first and fast due to the overbuilding, high fees, bums peeing and defecating on the entrance to the buildings and other problems associated with living downtown. There are only a limited number of willing, qualified buyers to match the inventory problem and this along with the economy and a myriad of other problems will drive prices down a minimum of 50% in SD and SoCal.
