IMO the missing piece of the puzzle is the answer to “are we going into a recession?” Think about it, this is getting ugly fast in an OK economy, what does this look like when and if we have negative job growth?? Take it from someone who knows, it is very difficult to replace a six figure income when you are laid off in a soft job market. I get chest pains thinking about that experience. Thats what will hit the nice areas. The people who bought at near peak prices are stretched as far as they can possibly stretch. One job loss in a two income household and that’s pretty much it. I don’t know if this will happen but it is starting to look like San Diego will lead the country into the next economic downturn. You cannot have RECORD BREAKING NOD’s and foreclosures and have the economy unscathed. Point being don’t be surprised to see the housing downturn speed up in ALL areas. IMHO
