I’ve been watching Carlsbad/La Costa for many years, and while I don’t have the experience that you folks do, it seems obvious that while that area will always command a premium over inland areas, homes there will see very nearly as big a decline, if not just as big, percentage-wise. In the late 90’s, 2-3k sq ft homes in nice neighborhoods were going for $300-400k, and I just can’t see any reason why they won’t end up at $400-500k. It will just take a few more years. The coast always echoed inland price drops in the past, and I find the same reasons for well-off people relocating there also existed when prices weren’t exorbitant.
