The big point you are missing (perhaps intentionally), is that a substantial chunk of SD RE assets are vacant investment properties. The owners have no emotional investment, other than the sticker price, and moving is a non-issue. They will unload these as soon as they realize the markets turned. Expect the frenzy to increase as the speculators move from profiting to minimizing losses. This is turn will put pressure on everyone with an exotic loan to bail out or eventually foreclose.
True, folks that have been here since pre-bubble days and aren’t dependant on the RE industry will probably stick around. I don’t think anybody doubts that.
