“Thanks for sharing that and participating in this forum. I invite you to consider my point of view…”
Anything is possible in the outcome of this bubble… However, there are a few reasons I do not think it will go like the last RE estate downturn in San Diego and this time prices will drop significantly instead of flatten or drop only a small percentage:
1. Internet (speed of information flow – zillow changed everything… if you look up a home you are interested and see that the owner bought it two years ago for 550k and has it listed today for 1.3M… you are very likely to say “No way am I paying that!)
2. Percentage of homes bought with ARM’s in the last few years.
3. Prices increases 2&1/2 times higher than the last re peak in relationship to incomes (see Rich’s graph in the bubble primer entitled “Median Home Price Divided by Per capita Income: San Diego – Carlsbad – San Marcos”)
4. Current detractors from attracting new residents to San Diego compared to the last RE downturn: deteriorated traffic, nationally publicized local government problems, and mediocre schools.
