Guys all along we have been saying that the outlying areas and the speculative areas are going to get hit first and hit hardest. How many times do we have to post that. Every now and then someone comes in and whips everyone into a frenzy by posting a foreclosure in Torrey Hills or 4S or La Costa Valley but these locations are not going to be presenting miraculous deals until later in the cycle.
It is depressing but it makes sense. San Diego has alot of people in it and a decent fraction of those people make alot of money. The ONLY thing that will accelerate the depreciation in areas where most of us want to live will be a disruption in employment.
For my own selfish purposes I want the prices to dump in Solana Beach or Scripps or wherever but I am resigned to the fact that they will happen at a much slower pace then in Eastlake, Murrieta, or Escondido. Why wouldn’t they? They have higher income occupants, they have much less speculation, they most likely have less toxic loans then these other places AND they have a higher tolerance to live with the toxicity for a longer time.
Am I missing something in that this makes perfect sense and will continue to be this way?
Let me put it another way… why do people think these other places where they want to live would come down very quickly, as quick as these less desireable areas?
