I think last time around (90’s) the high end markets got clobbered the hardest (La Jolla, Del Mar, Fairbanks, Rancho Santa Fe etc.)I saw prices drop UP to 50% or close to that number in those areas. The “middle”(upper and lower) class neighborhoods held their value “better” Clairemont, La Mesa, University City (homes not condos), the areas around SDSU, etc. depending upon individual circumstances drops in the 20 – 30 % range. That is my recollection at least.
This time I think the high end will hold out somewhat better, I think the pain will be felt predominantly in the “middle” class neighborhoods I mention above which are now priced in the (mostly 600-800k) range for anything somewhat decent. IMHO, these areas have the potential of up to eventually 50% or more drop in value. I think (hope)2010 at best, as much as I’d like to see it happen sooner.
