Here is one data point: I live in Torrey Hills. Right across the street from Torrey Hills elementary, so this is quite a desirable little neighborhood. I rent in a development in which the houses are all quite similar, so one transaction is not too dissimilar to another. A fair number of recent transactions: Around 2005, sales around $800K. Late 2006, low 700’s. Now one guy has a house on the market for about one month, and has gotten one offer at the low of his range, $640K. Now, he declined the offer, but still, there is a fundamental decline in value going on.
The sad thing is many are good, earnest people, families with little kids. These ain’t no ghetto HELOC abusers.
