So you cherry pick one area (one of the more desirable) to make your point, but then back track and agree me in the end, whats a boy to do?
First off San Diego will not be saved by CV and its environs. You’ll note in my original post, I asked bugs to name names on areas where this 70% figure is true. Finally distress DOES breed afford-ability; they are two sides of the same coin. If prices were lower there wouldn’t be REO’s.
I think we can all pretty safely agree that SD is not Detroit. This means that there is always a price greater than zero at which ANY property here can be sold. Now given that as my axiom, I posit the corollary if an REO exists, it does so only to the extent that it was not affordable. Thats why it became an REO. The distress happened prior to the foreclosure. Foreclosure is just a way for the bank to dictate the terms. Are you telling me that the bank kept the price the same as the seller who lost it?
All of which is really tangential since the whole point I made was that on a macro level distress breeds lower prices as lenders don’t want to hold houses and will in most cases keep cutting the price till it sells.
Rot always starts at the outside and works in. Temecula is North county later this year and central SD next year.
