Though, I agree that home prices should still go down in San Diego and to a large extent has been artificially propped up…I doubt a house like that in Poway would sell for mid 300s. You would also have to see that interest rates now are at an historic low, I could get a 4.75% 30yr fixed now, which I believe people could only dream of in the 90s. (I will admit, I am not very versed on how interest rates were in 96s…I am 30 myself and that too an immigrant…but I believe interest rates were higher in 1990s in the US).
Look, I have been on this site for more than 4 yrs and I believe home prices are still too expensive compared to purchasing power in SD. But, I doubt it will fall significantly from here, I think the federal govt will start some other scheme as soon as housing starts faltering again…it will be a gradual decline with inflation gradully cushioning the fall…
