Perry, I think you’re right. I hear a lot of talk about how the nice areas will hold up because the people living there have money. However, many of those people have businesses that could fall on hard times. I know of a family in Coronado who has their house (long time owner) for sale because their business is going through rough times (just one instance, I know, but could be part of a larger trend).

Further, it seems that many business owners have been using the equity in their homes to keep their businesses going. A drop in value will cut that short.