Yes there are huge drops in high end stuff. However talk to the people who are looking for quality homes in 4S Ranch, PQ, Carlsbad, Scripps, UC and other spots. Talk to the young couple looking for a home in a good school district. PQ pricing is much closer to 2005/2006 pricing then 2002 pricing.
I sit there and point out the price declines froma 2 million dollar home to 1.2 million or whatever. What is the point right? If I cannot afford it I cannot afford it.
The price declines in high end will continue regardless of the foreclosure rate as that market has alot less demand even in the best of times.
However those who think they are gonna live in the 2500 sf home that they got at a substnatially reduced price because a foreclosure torrent came and washed pricing down to something substantially less then where we are at or WERE at in 2008 and want to send the kids to Poway schools or Torrey Pines schools or something of that nature… well… I am just not really seeing that happening because all the people that are underwater in those areas will need to lose their homes.
If the govt lets that happens then great…
I would suggest that you guys also track cancellations at the trustee sales to see what is happening as the properties go and do the distress dance.
Will this happen with all properties? No of course not.
If you believe things will change then great. I think the govt is learning how to keep a lid on things and they will continue to sharpen their skills.
“nothing left to do but let capitalism determine the true value of real estate.”
heheheheh…
Yes capitalism… that is almost as funny as raising ponies in chula vista.
