What did you expect from the Realtor? There is no bubble, prices won't decline, supply and demand, etc, etc. He stayed to the script.
I think Rich should have jumped in there a little more, but I am sure that has to be nerve wracking to be on tv.
Hell yes prices will decline. We just had the greatest increase in home appreciation that most of us will ever see. The last time we had an increase at this level was 60+ years ago. The affordability index is at a record low, wages are flat, sales are tremendously slow, and home prices just started decreasing. What the heck do you think is next? Further, real estate has been a huge part of the economy, primarily driven by the great appreciation of our homes over the last few years. A tremendous amount of that equity has been placed back in the local economy via home improvement, BMWs, Hummer, boats, vacations, etc. We are already seeing a drop in refinances, an increase in interest rates, and consequently a drop in spending. This will take time, but we will definitely feel the impacts in the very near future. We also expect to see a large number of interest only loans resetting in the near future, this too will impact the problems along with the increases in fuel and energy costs.
Anyway, I think the above is what Rich said. I may have added a thing or two.
Did I forget anything?
How can you possibly argue/debate the above paragraph???
So yes, irrespective of the diverse economy in San Diego, the high demand for housing (so called) and the pockets of affordable real estate (was he joking) in San Diego we are definitely headed for a real decline in the housing market.