Interesting comments. I agree with most of your comments (I am a renter who has been priced out in the current market ) and a long time SD resident (>10yrs). But I wonder who are buyers who in the past few years have pushed it to such ridiculous heights. While there has been some job growth (I am in hitech and SD has weathered the Tech recession of 2001-2002 much better than the Bay area where I worked for a couple of years). In 2001 SD houses looked a raging bargin compared to Bay area which seemed justified since the salary levels and entreprenerial levels were no match between these regions. Could it be that most of the buyers in SD already purchased in 2001-2003 time frame and have enough equity that the eventual fall in prices could be a long multi-year scenario ? What else could explain 10 houses on the same street in 4S ranch asking $200k more than they paid for just a couple of years ago.
