According to Union Tribune “DataQuick expects to report today that the six-county Southern California region saw defaults rise nearly 159 percent last month to more than 9,200, compared with 3,562 in April 2006, and that foreclosures skyrocketed from 311 to more than 2,800 over the same period. San Diego’s defaults rose from 554 to 1,346, and foreclosures increased from 85 to 525, April to April.”
“But San Diego was painted as an area less vulnerable to any further major downturns, contingent on the health of the general economy. Reasons include relatively few unsold, newly built homes and new projects; steady if not improving job growth; and an earlier end to the housing boom than other markets where sales and prices are now in decline. … Prices, which had peaked at $517,500 in November 2005 and lately dropped to as low as $472,000 in January, have recovered somewhat to stand at a median $490,000. But they remain 10 percent or more below where they stood a year ago in many neighborhoods”.
As I remember, the housing market in San Diego headed south earlier than Los Angeles and San Francisco. The current slide was only from the drain of cheap money, which means that the market is vulnerable to further slides resulting from rising foreclosures and the weakening of local job market. Unfortunately, with depreciating housing value, foreclosures are rising really fast. With economy growth significantly slowed down, the job market is unlikely to absorb the loss in housing related jobs. So there are certainly more drops to come.