San Diego Housing Bust … How Bad Can It Get?
Every day I get dozens of emails and calls asking my opinion how much worse our San Diego housing market can get. Being just a local real estate broker, this is a difficult question to answer. I would venture to say that if one asked three economists, the result would be three diverse opinions.
Perhaps what is occurring in Las Vegas gives one a clue for the direction of the San Diego real estate market. The abundance of foreclosed homes in Las Vegas initially generated great interest with 'bargain hunters.' This foreclosure market is now generating fewer buyers. The hoped for 'quick turnaround' for many of these auction buyers has not materialized. The Las Vegas real estate market has instead just remained locked into a powerful Buyer's market with continued depreciation.
The decreased interest in foreclosed properties, has brought down the value of these properties. This, in turn, has aggravated the problem and is accelerating depreciation in the affected communities. [tags]Las Vegas real estate,foreclosures,San Diego foreclosures,San Diego homes,San Diego housing bust,San Diego real estate market[/tags] San Diego Realtor
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Hi Bob,
Another great post!
I think it is about time you start calling for a regional RECESSION!
It’s coming!
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The Houston real estate market is just now starting to slow. I sure hope we do not follow San Diego home values down.
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Boy, am I glad I decided to rent in 2005.
Keep up the ‘real’ news!
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I agree 100% with you, but, also being in the business, I can not really say it. Way too much peer pressure to just say It’s a great time to buy.
San Diego Realtors
People want MORE than what they can afford. If they did not, there would be no such thing as a credit card or a mortgage to begin with. If you want to be 100% honest, the only people that can “AFFORD” to purchase a home are the ones that can pay cash. EVERYONE ELSE…LITERALLY EVERYONE ELSE is at risk of borrowing money and not being able to pay it back. They could lose their job. They could die. Anything could happen.
Martina
San Diego California Hotels & Tourism
People bought homes that they shouldn’t have, and they STILL DO. How far should the responsibility of the Realtor span? A real estate broker may have a client choose a house on the corner of a busy street in a flood zone. Maybe the house used to be a meth lab. Maybe the house has been on the market for twelve years, but this particular client loves it, despite all the disclosures and against all sound advice, and wants to buy it. Maybe the reason it’s been on for 12 years is that the seller won’t take less than full price and this particular buyer is willing to pay full price! Is it going to be the real estate professional’s fault if the client purchases the home and can never sell it again? Should the real estate professional act like God and tell that client that he/she REFUSES to sell them the house. (BTW that would be a violation of the client’s rights and a breach of agency).
Gina
San Diego Real Estate Agents