[quote=pemeliza]”Any reason to think those prices don’t portend bigger drops in the future for desirable coastal areas?”
DZ, you may be right but I tend to think it happens the other way around. Recent considerable weakness in the desirable coastal areas has pretty much decimated demand in second tier inland areas with less than stellar school districts such as Mt. Helix. Personally, I think that certain areas are going to drastically over-correct this downturn and Mt. Helix looks to be one of them.[/quote]
IMHO, you are both right. Drops in the higher end will cause drops in the lower end, and vice-versa, until the true, organic bottom is reached. At the very bottom of the cycle, we’ll likely see price compression, which usually marks the turning point in RE cycles. We are not there, yet.
