The table is a good indicator of one reason why this became such a large problem. San Diego didn’t have as many sub-primes but…..(1) 20% is not a small number (2) The developers way overbuilt the condo market in SD and priced the housing developments at absurd prices. The end result is that there is a huge glut of condos that are sitting empty and a bunch more that speculators bought with the idea of making a ton of money for simply owning them for a couple of years. SFR’s are no better off because many people bought or re-fied with a 2/28 or other horse crap mortgage (sub-prime or not) and there are a ton of them that are just starting to come due. Now they’re caught in real estate hell and many will just hand the property back to the lender, further exacerbating the problem for those who have been paying their mortgage because now, they’re going to have less paper equity in their homes……….a whole lot less.
