A long time ago on this board, I predicted that the lower end areas would be creamed but the higher end would hold out long enough for a bailout. After all, it’s not really a problem until the pain trickles up the financial ladder it seems. As soon as it does, suddenly the world is going to end unless we act yesterday.
As much as I hate that viewpoint, that’s still the direction I tend towards.
While it may be too late for Oceanside, Chula Vista, etc – I personally don’t care to live there.
The areas that I, and it seems many others on these forums are anxiously waiting for to fall drastically in price… there’s still quite a bit of time to find a way to keep these people in their homes.
Loan modifications, foreclosure freezes, low interest refinances, who knows what trickery will be used. I just have this unsettling feeling that an artificial floor will be put in place with a long period of no gain and a lot of people living in homes they can’t really afford. Sure a small number of foreclosures will slip through the gates in the interim, and they’ll be met with multiple bids.
That’s my pessimistic viewpoint. 🙂
/Still sitting on the sidelines on a hoard of cash, watching it’s value slip away. Wife pressures building, crazy financial market, and not wanting to catch a falling knife.
