I also think that the high-end is not immune at all. Quite the contrary. Rich folks are not stupid, and they can figure out as well as anybody else, if not better, that the market is falling. They won’t buy overpriced properties just because they can afford them. I am fortunate to have a substantial liquid net worth, but that doesn’t mean that I am going to throw my money down the drain on an overpriced asset.
CV has different issues. On the downside, there is a lot of new supply coming down the pike. On the upside, it is not really “high end”, but it is a great location for all the techies employed by the biotech and computer industries in the Torrey Pines – Sorrento Valley region. It will no doubt be affected, like everything else, but, if I were to make a bet, I would say that it will go down far less than outlying areas (Escondido, Santee, Temecula, etc).
