Rt.66 – one of the reasons I continue hanging around Pigg-land (OK, I’m addicted!) is to gauge sentiment
I have high confidence in these data points:
1. San Diego real estate was a bubble that has now burst
2. bubble dynamics say that ALL financial bubbles (not some, or most – ALL) fully retrace to their starting points and often overshoot to the downside
3. market psychology says that a significant downward trend (economy, real estate, consumer sentiment, incomes, rents) will not end until there is a capitulation phase – people involved in the market will be utterly repulsed by the ongoing decline – even the least economically-savvy guy on the street will ‘know’ that it is a bad idea to get involved in the declining market
As long as we continue to have threads where people are trying to rationalize purchasing San Diego real estate (especially rental property!) I will remain convinced that the RE bottom is off in the future somewhere – at the true bottom in our real estate market I doubt there will be many people blogging about real estate at all – most people will be repulsed by the mere thought of real estate and smart people who have maintained the ability to actually purchase property will be busy doing so
