Suppose for argument sake that inventory levels stabilize (by that I mean they stabilize according to seasonality meaning peaking about this time of year and then falling in winter and picking up in spring) according to OC Renter’s blog, http://bubbletracking.blogspot.com/search/label/SD%20Inventory , we are at population adjusted all time high inventory levels, and lets suppose that sales transactions level off at this level which are running at or below some of the worst levels of the mid 90’s. And lets suppose that NOD’s and NOT’s level off at where they are today, substantially higher than they were at the worst levels of the mid 90’s. What are the consequences for San Diego RE if things just level off right now where they are for 24 to 36 mos?? Case Shiller is showing that sales/inventory/NOT’s at these levels are producing steady home price declines. Point is right where we are right now is bad enough and if it stays this way it will result in a more pronounced downturn than the 90’s.
