This graph was compiled by the Manhattan Beach Confidential blog and plots high-end home sales in six affluent markets (Beverly Hills, Rancho Palos Verdes, Manhattan Beach, pacific Palisades and the 90402 Zip code in Santa Monica) dating back to 1988.
The sales activity in these wealthy areas has been on a strong decline since 2004 despite prices continuing to rise into 2007.
I expect activity in these areas to continue to slow through 2009 and then begin to pick up in 2010/2011 after further price declines motivate those that are on the sidelines.
The last major real estate downturn occurred in the early 1990's and didn't start to appreciate again until that late 1990's. . .How will this downturn be any different?