Congratulations! I don’t think that any neighborhoods (except the ultra-mansions in the $15 million plus range) will be immune from the bursting bubble. IMHO, there will always be some buyers who refuse to believe what is obvious and it looks like you caught one.

Also, the outlying areas always get hit first (and the worst) and then it starts moving towards the better neighborhoods. I read several other housing-bubble blogs and communities like Santa Monica and Pacific Palisades in the west end of L.A. (which are very high priced for what you get) are starting to see larger reductions in their asking prices, rising inventories and more negative press.

Be happy that you sold. Now, you can sit back and watch the festivities.