[dd74]

The prices will drop, but in L.A., in very small increments. I'd say 10 to 15%.

I work near Hancock Park, and two houses I've seen for sale there commanded close to $2 million. They both sold in two weeks.

L.A. is immune to what plagues the rest of the country. Why? Because it's L.A. Everyone wants to live here. For the odd person who says they don't, there's 1,000 more who say they will. This alone will fuel prices to where they are now. Sure, there will be corrections, and foreclosures are on the horizon. But there's a reason $2 million dollar L.A. Metro homes sell in two weeks, in addition to the fact that way out in Landcaster/Palmdale, the average price of a single-family is approaching $800,000.

1) There are only so many houses available here.
2) Lots people want to be here. Few if any will be admitted $$-wise.
3) The people who do come, have the money to pay, and continue to fuel the high prices.