Why is it that the mass has a tendency to naturally be followers? Of course when our economy was in the gutter (so to speak) the media and many buyers belief was the sky (market) was falling to depths way beyond repair. That a multi million dollar home in pacific palisades or Brentwood would sell for 500~700k and condos in Santa Monica (close to the beach) would drop to below 200k!!
Of course there were a few exceptions to any rule. The 2br condo I sold on Franklin near Broadway as an REO for 259k was a unique deal in 2008 or the 2br fixer upper / tear down in the bluffs on swarthmore for 900k ….
The market is healthy is what my normal answer is. Yet there will always be a buyer for every property, usually when they are following the media hype, especially since I just saw a home in echo park sell for 750k on. a flip that was just bought 8 months earlier for 350k….and a home in watts that was flipped for 300k after selling for 105!