I’ve been thinking along these lines a bit as well. Does anyone know how La Jolla, Del Mar, PB, etc. fared during the boom? If they appreciated at the same rate as San Diego overall, I see no reason why they couldn’t fall just as far or hard. They were just as nice 5 years ago as they are now.
If OTOH, if they didn’t grow as fast, the beta idea from raybyrnes is an interesting way to think about it. Crazy exotic mortgages notwithstanding-if they went up as fast, they can fall as hard.
