[quote=temeculaguy]I’m not saying that La Jolla or Del Mar wont always be expensive in relative terms but they can’t maintain being out of whack with Del Mar and La Jolla incomes. In past busts they fell similar percentages to the rest of the county, everything is connected but it’s not immediately connected, it takes time to spread. [/quote]
Exactly. The La Jolla median has tanked in the last year. Whether current real-world sale price reductions there are that extreme, I don’t know, but it wouldn’t surprise me to see an end result of 40-50% off the peak in the next few years. That’s in line with the percent drop for inland areas, and will still leave coastal properties much more expensive than inland.
During the boom, the koolaid was that prices would never come down. Then it was that they would come down, but not in the desirable coastal areas. Now it’s that they will come down in the coastal areas, but hardly at all.
