Make no mistake about this one point. The coast is NOT immune. There are already enormous losses here. There will be more in segments of the market. The difference is there are more long term owners, less space for future growth and more than anything (IMO) more responsible homeowners. People that own quality real estate here, particularly west of the 5 and moreso west of the 101 have a very hard time selling it even when they own it free and clear as many do. They recognize the scarcity of it and the unlikelihood they could ever get back what they let go of.
While people were chasing a nice detached home everywhere the people around here are more likely to have been able to afford one already. Many bubble buyers did so with move up profits from the area or from some other area. When given the chance to upgrade many chased “bigger and better” like other places, they just didnt have to stretch as much to get there. They are more likley to have the income and assets to support it. They tend to be more stable employeed (doctors, lawyers, accountants, financial planners, business owners etc) and while their incomes may rise and fall they are not subject to unemployment in the same way others are. There are also plenty of people who bought pre-bubble that are satisfied where they are. They could easily move up but dont care to. They rather prefer the stability of their established neighborhoods which leave people hoping to move into them frustrated because turnover is low.
