Real estate news isn’t all bad in San Diego.  The coastal city in southern California is one of the region’s premier places to live thanks to the sunny weather, beautiful beaches, and spectacular recreational opportunities.  On September 25, 2009, Max Jarman wrote in the Arizona Republic newspaper that bargains have begun to surface in San Diego, much to the liking of home buyers looking to scoop up a prestigious piece of real estate in San Diego at a fraction of its realistic price.  Jarman reported that “oceanfront real estate from Imperial Beach to La Jolla has not taken the 50 percent plunge that hit some downtown condos and subdivision tract homes. But beachfront property has come down as much 30 percent in some areas from 2006 highs, with much greater savings possible on foreclosure properties or short sales.”

However, decreasing beach property prices doesn’t mean some of San Diego’s most elite residential communities will be inundated by new people.  Roger Shawley of the San Diego Union-Tribune wrote on September 24, 2009, that La Jolla was still the most expensive housing market in the United States again, despite the hurting housing market and of course the most pricey San Diego real estate.  In fact, “La Jolla and No.?2 Beverly Hills were the only markets among the top 10 that saw a price increase from 2008.”  To the surprise of many economists, maintaining this rank is surprising, given the state of California’s high cost of living, cost of doing business, and high taxes.

An Associated Press report issued on September 26, 2009, the article claims “a million dollars doesn’t buy you what it once did. In most U.S. neighborhoods, it now gets you a lot more.”  San Diego homes for sale in certain areas, unlike La Jolla, have suffered.  The reporter writes, “a couple of years ago, the idea of getting a house in Rancho Santa Fe for a paltry $1 million was laughable. Now, foreclosures and financially distressed homeowners account for about 15 percent of sales, and home prices are down 30 percent.”  This also has a residual affect on other homeowners in the prestigious area who face devaluation of their own properties thanks to the lower home prices in the local market.