Now that you’ve identified yourself as not being local to SDs market I can understand why you aren’t seeing what we’re seeing.
RE markets are all local. There are a lot of markets that never got grossly distorted; those markets are not subject to significant corrections. San Diego and many of the other metro markets are not among those relatively stable markets and so they are subject to corrections.
Different areas entered into the increasing market trends at different times and will likewise enter into declining trends at different times.
“Hasn’t happened yet” was a favorite rationale used by the bulls to explain why the bears were wrong in their predictions that an overwound market must eventually unwind. Obviously here in SD those bulls have had to eat crow as current events have proven that “Hasn’t happened yet” does not equal “Won’t happen”. You don’t want to follow their example and make their mistake.
How the market reacts in you area is subject to local economic conditions. Hopefully your region’s RE pricing structure is reasonably in balance with its economic fundamentals. If not, anyone who’s overexposed might be well served in considering their exit strategy now.
