Has anyone considered the idea that the wealthy that live in places like La Jolla & RSF (or who wish to buy there) have much larger amounts of variable pay? I’m convinced that the recession we are in is going to narrow the pay disparity as the top tier gets butchered. It will also reduce their overall wealth.
This is not to say the wealthy will suffer as much…having to downsize from a 7 series to a 5 series versus having food to feed your kids isn’t a comparison, but I do believe it will substantially affect prices in rich areas. This is especially important since I believe many of the price gains recentaly are driven by the nouveau rich or plastic set.
