I don’t think the prices in CV will go down. I think CV has now earned a special Asian Enclave status that will detach it slightly from the local market forces, much like other Asian Enclave such as Cupertino, San Marino, and Irvine. FOBs will look at CV value in relation to other AEs and continue to find value in the CV prices.
As the dollar continue to lose value against the RMB, CV will appear to be even more of a bargain. Already within the last 6 years the Chinese have gained 30% in purchasing power. This means a CV home priced at $1 million today looks like it is just $760k to the Chinese.
The only thing is the Chinese have a lot more exposure to the Euro mess, and they are starting to slow down.
So things will just stay flat, but very unlikely to go down.
