Macro,
I am an agent and long ago gave up the wacky tobacky. I don’t think anything of what I am about to say is unreasonable or crazy.
La Jolla is not a good example because if it cheapens even a little people will decide it is a good time to buy there and thus buoy the price.
The rest of San Diego has seen price drops between 30 and 70 percent.
I am listing something right now for 40% of what the owner bought it for (no I was not the agent then).
While I would agree that your neck of the woods could stand to drop more, I don’t see mine doing so any time soon.
Right now most of the buyers I am seeing are working stiffs who have crunched the numbers and realize that buying (instead of renting) would reduce their monthly payment by a couple hundred a month.
Thats the kind of economic world that is healthy and relatively sustainable, IMO.
