SD Realtor – Don’t you think that many of these homes in foreclosure WERE affordable by many w/the teaser rate? It became unaffordable when the rates set. Also, we cannot dimiss entirely the rate of appreciation in a very short time was caused by so many factors. Hence, don’t you think the unjustified price increase will decrease. If you factor everything that caused the bubble, don’t you think we can expect homes to decrease and become affordable.
I think we have to speak in relative terms, of course. Will someone earning a median income be able to afford a home in RSF. Probably not. Certainly they can easily afford City Heights, but probably prefer not to. But, if their expectations are adjusted along w/the price of homes, they may be happy and be able to afford a home in a median priced neighborhood, maybe w/a little effort, an upper/median neighborhood.
