SD Realtor, you provide great insight into what the market is today.
As the professor wrote in a previous article, homeowners gambled on price appreciation. They did not buy homes they can afford, but they gambled on holding for a short period of time to use the equity to climb up the property ladder. Now that the loans are resetting and values are dropping, the homeowners are out of wherewithal. It’s happening at all levels of income.
You can be sure that people are turning in at lot more luxury car leases than toyota leases. My brother just bought a 911 from a seller in the Bay Area who had to sell immediately. He even delivered the car to San Diego. There’s plenty of money floating around in the Bay Area but not enough for the seller to sell right now, even at a greatly discounted price.
I watch the housing market and my brother watches the automobile market. The two are tied at the hip. The luxury car goes first, then it’s the luxury home — even in La Jolla. If someone sells a luxury vehicle, but does not get a replacement car, you can be pretty sure that his house is for sale.
