Northern CA…From Subprime to Negative Equity Epicenter

While Northern CA arguably is the epicenter of the subprime implosionwith cities like Stockton, Brentwood and Sacramento within its bounds, many areas have held up very well such as San Francisco and many cities in the East Bay Area, North Bay and South Bay (Silicon Valley).

In my opinion, this is only a temporary phenomenon and values in these areas will catch up. Remember, we had very affordable exotic and jumbo loan programs until very recently. In addition, this is the very first summer selling season without these programs.