I am not looking to buy in CV. I have not been following the market very closely up there.
However, FWIW, I used to live in CV from 1991 to 2001. I can tell you that during the RE slump back then, I saw prices fall 20% in a blink. I’m sure CV was just as desireable then w/its schools and location, etc. etc.
The incline in price back then was not nearly as great as this last cycle and it was not nearly as developed as it is now, yet they saw 20% declines.
Back then there were no special loans being utilized. There wasn’t free money being given away. You had to put money down. You had to prove you can make payments. Most loans were 30-yr fixed, though they did have ARMs, but back then rates were high and one didn’t risk taking an ARM for fear of rates rising. (Mine was 9 3/4 before refinancing years later)
All the stringent, normal loan requirements and they still had a 20% decline.
So, though I admit I’m not very up on CV nowadays, but seems to me probably people were availing themselves of our special free money financing to buy these newly developed McMansions in CV. And since CV does not live in a vacuum any more than LJ or PB, and they were subjected to bubblicious prices, well, I’ll stick my neck out and say there will be some declines on the SFHs there as well. They participated in the bubble. They will suffer the consequences as well. Just will take time.
