A big chunk of the city of Encinitas revenues are based on home purchase prices. After purchase, property taxes rise 2% a year.
My economist friends think our city is nutz for believing there will be no price depreciation in Encinitas. Check out this graph:
Source: Christian Science Monitor
I have not once heard the NAR economists back up their analysis with data and findings. That is why you get things like this second figure:
Source: Voice of San Diego
Is the city of Encinitas in a tiny bubble sheltered from the big popping bubble? Will the city of Encinitas collect it's projected future revenue in order to build it's high end parks, fire stations and other infrastructure?