Well, as much as the Real Estate Powers that were tried to fight it, we did have a "bubble burst" of sorts in the San Diego area.  There are many areas of San Diego that have remained a bit immune to this market "softening" (to put it lightly.)  There are some areas, however, that are suffering HUGE losses in value.  Is this necessarily a bad thing?  In the early 2000's we were looking at an inflated market.  Speculation upon speculation and predatory lending practices drove the market up much faster than it really should have risen.  What we are now seeing is the "correction" that the experts knew was coming.  What is really hurting the market in select areas is that people who weren't qualified were able to buy houses with inflated prices by using "creative financing."  Personally, I think it is GOOD for people that we are experiencing this softening.  Today's lending criteria is stronger, so the people buying right now are more qualified than the (more often than not) distressed sellers they are buying from, and the prices right now are more realistic in relation to value.  (Tell me that it made any sense to look at a two-bedroom condo in Chula Vista, where the whole place is over the garage, and believe that it was worth $500,000.)  It is now a SERIOUS buyer's market.  If you have been waiting to buy, now is an AWESOME time!  You have lowered prices, low interest rates, and up to $18,000 in tax credits available for buying this year!

 

What did you think of this article?

Liked
Disliked
No Opinion