I think some geo/price sectors will see a 15-20% reduction. I would be surprised if any geo/price segment suffers close to a 50% loss of value. I think other geo/price segments will adjust from -3 to +3 depending on a host of micro-market factors ranging from elementary schools to view to neighborhood. (For example, now that Carlsbad isn’t building another high school, this has put pressure for some to move to San Diguieto Union High School District. Or the widening of I-5 may make some streets in Cardiff which already have a quite a bit of road noise nearly unbearable.) The challenge is to identify which sector any given home is in and assess the purchase price against the risk & opportunity.
