While Encinitas won’t always be overpriced, it will always be expensive.
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Yes, just as Beverly Hills, Malibu, La Jolla, etc. will always be more expensive than O’side, Escondido, Van Nuys, etc. They always were, and probably will always be more expensive.
The point some are trying to make (I’m in this camp) is that the ratio between high/low-priced areas should not significantly change over time. Right now, the spread is very high, and unlikely to stay there.
The lower end has probably seen the greatest portion of its decline (though will likely see more, just at a slower pace). The high end is just beginning. These things **roll.** It does not happen to all places at exactly the same time.
BTW, it’s much more difficult to replace a $100K+++ job than a $25K job — especially in a **global** recession/depression where the stock markets and credit markets are constrained (less capital to fund new ventures, among other things). People will always need to shop at Wal-Mart. They will not always need to upgrade their software. The high end of the job market is more dependent on “wants” while the low end is more concentrated around “needs”.
The money from starter homes (not uncommon to see $200K+ down payments received from the sale of a crapshack in O’side during the peak) will no longer be able to prop up the next tier…
We have a long way to go, but, “to the patient go the spoils.”
