Put yourself in the shoes of the housing industry or the government.
While you are standing in those shoes imagine what would happen if you told the truth.
The truth might sound something like this: “The city of San Diego has allowed several thousand too many condos to be built in downtown. Since there is no fundamental demand for these units, they will languish on the market. The condo builders will reduce the prices on these units until they sell. Homeowners trying to sell will be undercut by the builders who have more ability and incentive to lower prices. Anyone buying a condo downtown at today’s prices should expect to be upside down very quickly and most likely end up losing money. A large percentage of these excess condos will ultimately become rentals and will probably depress the rental market.”
How do you think this news would go over? How long do you think you would keep your job?
Ever heard the expression, “Don’t shoot the messenger?” – you would not want to be the messenger delivering this news.
