“The thought of moving is not worth several hundred thousand dollars to some people. I’m just mesmerized by this, I can’t figure out why not.”
It seems to me that you’ve confused your forecast with the actual future. If the future were certain (and it involved prices dropping 50%), and moving meant several hundred thousand dollars free and clear, I think almost all people (who are not wealthy) would move if they had the option.
The people who don’t want to sell and rent feel that way because they know that the future of nominal home prices in San Diego can’t be predicted with the certainty that you apparently believe it can. They are (rightly) concerned about the possibility that prices may stay level (or go up, or go down but not enough), in which case you can forget about intangibles and emotions. They’ve lost their low-interest-rate loan, their lower property tax basis, real estate commissions, moving costs, and the time and effort spent moving.
