stop the hype I am glad that you have posted. My brother actually works for KHov so I actually do have insight as to what is going on.
As far as the developers go, I have no doubt that that will survive because they always do. Agreed that this year we have not seen massive price reductions but what many new home buyers have not seen is the way that the phases have been released. Builders have substantially slowed down the phase releases in order to keep the demand strong. It is worked and will continue to work.
I should have been more succint in my description as to what I envision for the future. It is not such that I see the developers lowering their prices. It is such that I see people who could not afford the new homes running into defaults.
Scruffy seems to conveniently step around the hundreds/thousands of condos that were built in downtown SD not more then a few years ago that have already gone down. I personally have been tracking a beautiful multimillion dollar home in Del Mar Heights that has been offered several hundred thousand below purchase price of just 2 years ago and is in default.
Finally, if you read these posts you may have seen that I am one of the few that actually is understanding of people who buy now. That in fact I have been looking to buy for myself with full acknowledgement that there are other reasons for buying homes other then the sheer economics of the decision. If it was only my choice I would not buy but it is a family decision and harmony in the family is more important to me.
I also believe that the depreciation cycle will have different effects on different neighborhoods. All I can say is that I wish you the best of luck and we will see what happens. Like you I will be purchasing soon as well.
If you like I can post several cases of depreciation for higher end homes over a million dollars that were built within the past 5 years.
