[bubble_contagion]

Everybody wants to be thin, most people aren’t. Given how hard it is to live in San Diego with a lifestyle like it is portrayed in the media, very few people attempt it seriously.

[bubble_contagion]

Back in July I reported that one 2 bed unit of the Lucera condo conversions was listed at $325K. These units were being offered (and sold) at around $430K back in February 2006. Today there are other five units listed for $335K or below and one listed at $300K. I continue to believe that these units are worth $225K tops and will be at that price in a year or two. It must suck to have bought at $430K.

[bubble_contagion]

Remove the section of the curve between WW I, the Depression and WW II. Now look at it again. Very scary.

[bubble_contagion]

Affluent communities, like Carmel Valley, will probably weather it the best since foreclousures are less likely. The worst that can happen is that sales grind to a halt. On the other hand, it only takes one distressed sale to set up the comps of the whole neighborhood.

[bubble_contagion]

A couple of days back they said 900, now it will be 12,000 more. This gives you an idea of how quickly things are changing. Good they waited after market close to release the news. Imagine this on top of today’s the very week employment numbers that tumbled the markets.

[bubble_contagion]

Schizo,

You wrote:

“SD inventory has stabilized”

Fact: Inventory is at record highs and still increasing.

Please explain your reasoning for your inventory statement?

[bubble_contagion]

Bland Diego has great things going for it, like beach brawls and an absolute lack of culture.

[bubble_contagion]

schizo,

Inventory is at all time high but it is not much higher than last year. Sales have been down y-o-y for every month of 2007. This together with the record number of foreclosures, arms reset and the mortgage industry meltdown of last month clearly indicate that San diego is now at the bottom. Please go ahead and buy with confidence that house or condo that you want.

[bubble_contagion]

Making money vs. creating wealth.

Creating wealth is building homes where there were none and selling them. People that did this or that improved the quality of a home and sold it, increased the strength of the economy.

People that sold an old house just trasfered wealth from one person to another. In most cases from the bank to the buyer and then to the seller.

The economy doesn’t grow when people sell things to each other and increase the price after each transaction.

The economy growths by building and creating things.

[bubble_contagion]

Very interesting graphs. In 2006 we had about the same inventory but prices didn’t go down until the Fall. In all of 2007 prices have been trending down. Also note that in Sept 06 inventory started to decrease but in Sept 07 inventory keeps going up.

[bubble_contagion]

Yes, I am not complaining. The rent is $1700 so the increase is of about 1.7% which is less than inflation. I was worried of a greater increase this year with all this talk about people being foreclosed and low home sales.

[bubble_contagion]

Regardless of what you end up doing, read the book on the link below so you are familiar with all the financial terms and inner workings.

[bubble_contagion]

-Built in 1952, 3 bed with only 1 bath?

Yes, take it off the market, tear it down, build a new one and then maybe someone will offer you $400K.

[bubble_contagion]

-Built in 1952, 3 bed with only 1 bath?

Yes, take it off the market, tear it down, build a new one and then maybe someone will offer you $400K.

[bubble_contagion]

-Built in 1952, 3 bed with only 1 bath?

Yes, take it off the market, tear it down, build a new one and then maybe someone will offer you $400K.

[Author]

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