Why analyze such a small section of California?

It's simple. Knowledge is local. There are some great real estate reads out there in the blogosphere that talk about the housing market as a nationwide phenomenon. While individual locales are not immune to national headlines, they exhibit unique characteristics that distinguish them from other markets.

The Greater Los Angeles Area (namely, LA and Orange County) experienced feverish real estate appreciation during the first half of the 2000s, just as the nation as a whole. However, the ripple effect of the subsequent crash was not felt equally at all corners of the country. California has countless factors that may have influenced his own housing tumble as well as countless other factors inherent in the state that may affect a recovery. Two examples of this are Proposition 13 and the fact that California is a non-judicial foreclosure state, depending on the type of home loan.

I will focus on condos and townhomes because my own research and observations lead me to the conclusion that they represent a better overall deal than single family residences in the current market. Further analysis to bolster this claim will follow.