by Calculated Risk on 6/04/2008 06:43:00 PM

From the LA Times:



Merced provides a great contrast to Oceanside. Both areas have been inundated with foreclosures, and REOs are driving prices sharply lower.

In Oceanside (at least some areas), the prices have reached levels attractive to some investors. The rental market is tight in coastal north county San Diego, and these investors will provide somewhat of a floor on prices.

However in Merced, it appears there are simply more homes than households. This is farm land, and is definitely not a 2nd home location.