I’ve said before, during the ’90’s I saw 20% off the top like that!
I kept hearing how Carmel Valley is immune and I say it does not have its own sustainable economy, does not live in a protected bubble and will fall just like everyone else.
In fact, most of Carmel Valley’s McMansions were built during the bubble. Remember that back in 2000 you can still get a SFH in the 300k or so range.
In the ’90’s we did not suffer a world economic crisis, government wasn’t on a mission to bail out anybody and unemployment wasn’t anywhere near the road we’re on now. And yet CV still had a 20% decline.
Oh, there will be more to come. Alt-A and option ARMs recasting and resetting, unemployment rising, credit still tight, no more trick loans, no more musical chairs/buying up/flipping, should be interesting.
