Yeah that is a good point OCR… Although again, the amount of smart money out there to me is crazy. I mean crazy! No doubt it cannot and will not prop things up. That is why it is smart money… Do I think a 1.5M home on the golf course in Santa Luz is gonna go for 600k? No not even in 2011 do I see that. Can it find 800 – 850k or 900k? Yeah I think that is pretty realistic. Do I think that it will also be a different interest rate environment when we do see those prices? Yeah I definitely see that as well.
Also once again, the amount of listings with comments regarding the owner is a realtor is definitely non trivial.
Finally I “want” to say that my guess on the recastable loans is that more of them are for the lower end homes in 4S and Del Sur, (lower end being 500k-800k) which is not really low end in my book but low end compared to 1-3M homes. However I have no anecdotal proof. Conversely it is not a stretch to say alot of Santa Luz and high end homes were bought by re professionals (using the term loosely) who believed the hype of a never ending appreciating market.
