Easily explained; supply and demand.
I agree there is no housing recession in metro LA! Most of metro LA county is built out, very few new projects can be built, therefore new supply is somewhat restricted and the underlying demand supports the prices. Contrast this with San Diego where numerous large projects have been built adding to the supply. If buyers get spooked, prices can soften. Even then I read on this site that projects are selling and there are some price increases.
Look at Sacramento and other CA areas where builders are able to add lots of new product. These are the areas that are experiencing the price drops.
Foreclosure noise at the lowest end of the market has the bears excited. In LA, rate is still 50% of the peak of mid 90s. Nothing to worry about.
Median SFR price declines of 50% in LA (or even SD?) NOT GONNA’ HAPPEN. (**itty El Cajon apt conversions is another story)