What’s funny is that you see a constant flow of new listings over $1MM in Encinitas, but precious few sales in that price range. Lots of delusional sellers who think that they are sitting on gold mines keep trying to cash out.
I think the HELOC effect has been understated in many of the “high-end” areas. So many people took on lots of debt, thinking that they could “just refi” or sell their house and pay off that debt. Lots of people thought they were really rich because their neighbors were selling for ever-higher prices (to speculators with no-doc, neg-am loans), so they loaded up the debt and spent like kings and queens. It looks like reality might finally be sinking it.
