Scarlett PQ is super tough right now. Not much inventory there at all and what is there is either overpriced or has alot of noise from I56. My outlook on PQ, (and the I15 corridor as well as CV) and I guess most of the desireable areas in San Diego, is that we will not see any dramatic reductions for quite awhile. We may bump up some or down some and we will see fluctations in terms of price REDUCTIONS for overpriced inventory, however that is needed for sellers who overpriced to begin with. I have pretty much thrown in the towel on both the foreclosure tsunami and the unemployment tsunami. Employment has improved and I don’t see a dramatic change when a bunch of census workers get dumped. Engineering employment is doing much better as are other white collar jobs. I think that in the future, a few years out when interest rates rise dramatically then real estate will depreciate substantially. Other then that the war was fought and the consumer/taxpayer lost. The government and the deadbeats/fiscally irresponsible/those gaming the system won. So looking back we can track a nice post by FSD back in late 08 that actually caught the bottom for many of the markets we track.
So again, I do not see another major leg down but for overpriced stuff it will come down. For instance the home at 8279 Bryn Glen Way has been a short sale for a month now. I know the listing agent and it is no surprise that the home went to foreclosure today. It was listed at 629-669k and went at the steps today for 526.5k. So what will it sell for? Hard to say, it is the 1799 sf plan at Monet in Del Sur.
Anyways that just illustrates that even the trustee sale deals are not deals right now. Hopefully we will see some more inventory trickle out this summer. If I were a buyer I would be pretty pissed at the loan mod programs.
