Hitting Richer areas

Early on when the bubble was crashing, Orange county and LA county held up well while San Bernardino and Riverside counties crashed. Richer people were able to hold out longer and avoid selling. This created a problem though. There is currently an absurd price differential between these poorer areas and the better off areas. This differential is much greater than what was present before the bubble since bubble prices reign in the richer areas while all the drop from the bubble is over in poorer areas.

Now this price differential is finally starting to rectify itself.

The Riverside Metro area is down 3.9% in the past year.Typical cities are:
Chino 6.5% down year over year
Chino Hills 7.5% down
Corona 4.9% down
Fontana 0.7% down
Riverside, 0.8% up
San Bernardino 2.6% up


The Los Angeles metro area is down a whopping 7.2%. Typical cities are:

Brea, 7.5% down year over year
Compton 2.6% up
Diamond Bar 6.3% down
Fullerton 7.9% down
Irvine 16.8% down
Rowland Heights 9% down
Laguna Beach 21.5% down
Long Beach 7.4% down
Los Angeles 7.4% down
Malibu 7.9% down
Orange 10.2% down
Pasadena 5.7% down
Pico Rivera 0.5% up
Mission Viejo 7.9%
Walnut 6.7% down
West Hollywood 9.5% down
Yorba Linda 6.8% down

That means a 300k home in Orange lost about 30k in value in just the past year even without counting the additional 2% homes dropped because of inflation. This was even before the last few weeks of chaos in financial markets too. Richer people own more stock, so now that it is so volatile I expect even fewer people will feel like buying.

The areas that are no longer falling are cities like Compton, Pico Rivera, and San Bernardino. Places where people simply could not afford to prop up prices at all and pre-bubble prices reign. The places which are falling like crazy are ones like Orange,