James I think high end/prmime areas is kind of subjective. To me high end and desireable are used in an interchangeable manner but I am not so sure they should be. For instance Rancho Penasquitos is desired by alot of people but by no means should be considered high end. Single family homes are in the 500k and up range out there although there are some twin homes cheaper out there. Also 4S Ranch is desireable and has single family homes in the 600k and up range. Encinitas is very desireable and has older home stock but also in that price range and up.
To me, high end is in the 7 figures and up range. I think that there is a very probable that high end will continue to collapse. As far as other non high end places that are desireable… well that is a trickier one. There is no doubt alot of foreclosures out there, alot of shadow inventory as well and more coming. Lots of unemployment as well. This is countered with a lack of inventory and a government that will throw the baby out with the bathwater in terms of trying to reinflate the market. How the inventory is disposed will be an interesting scenario.
