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[HOME] - [San Diego Real Estate Scam Warnings] California real estate bubbleProfessor Thornberg has left the buildingAugust 2006Wow, I just read in the Times that UCLA Forecast Economist Professor Christopher Thornberg is leaving! Turns out he is opening his own Consulting firm regarding Real Estate Consulting. He is still going to teach at UCLA, but he must be getting to ride the California Real Estate Bust for a ride and take advantage of his invaluable information in the private sector. Amazing! If this isn't another indicator of a new San Diego real estate market emerging, I don't know what is. He was just mentioning negative appreciation the other day, and he has stated that the bubble is popping, just like a bubble is supposed to. Well, I think we are really getting off easy in this area. We have seen some slight adjustments, and hopefull that is all we will see over the next few years. He predicted a soft landing, but that there is still a possibility to a hard landing. It sounds like all the factors are aligning for a very hard landing. I still know tons of contractors enjoying their new wealth buying all sorts of new equipment and supplies, not really saving for harder times ahead. The San Diego real estate market is a huge part of the San Diego economy right now, and many are employed in this sector, including myself. All the mortgage companies have already seen a slowdown, affecting my business as well. The people that provide better service and fair prices are the companies that will survive through this downturn. Affordability is at an all time low and we all know wages are not going to go up anytime soon to compensate the difference. It all hits home when Christopher Thornberg said "Look at what your house was valued at three years ago and what it is now. Is it really worth 70% more? The answer is no, there is no way you can justify the math." That makes a lot of sense. Will the San Diego real estate bubble burst? Hope not!
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