Investor's in Encinitas and other area's throughout the country, are taking their money out of bond's and investing again in real estate, as mentioned in this article by Charles Carrier in Inman News. He says:
"Remember, distressed homes in a distressed marketplace require a radically different mindset than the outlook for a traditionally functioning real estate market."
The surest way to understand pricing in a distressed marketplace is to invest capital and take a risk position on a property—this is the unique perspective that a veteran real estate agent, broker or investor offers. Which means you must analyze the evaluation of properties on both a 'market comparable' basis, and also as a long-term cash flow investment. In higher-priced and more speculative markets, a different approach applies.
The renewal of distressed properties is a win for everyone. By turning these homes around, and through our efforts on the ground, neighborhoods improve and price stability returns."