I’ve never seen a downturn that didn’t follow a fairly predictable pattern. It starts with the least desirable properties in the least desirable areas. Once the least desirable areas have been hit thoroughly, it rolls into the next least-desirable area (hitting the least desirable properties first), and on and on, until it gets to the most desirable properties in the most desirable areas.
The only reason the higher-end areas weren’t hit as hard during this downturn was because the govt intervened after the lower end had already been pretty much decimated, and the downturn was just beginning to roll into the more desirable areas. They’ve managed to prop things up fairly well, so far. Let’s see what happens if interest rates rise and/or the govt gets out of the mortgage market.
