Bargain hunt on for lost homes

The spread of foreclosures beyond the newly built developments in the inland counties is now affecting prices in more affluent areas. Some analysts had predicted the high end of the market might escape substantial price drops. But in June, the sales price of Southern California homes valued in the top one-tenth of the market declined 20% from a year earlier, according to DataQuick.

Richard Green, newly appointed director of USC's Lusk Center for Real Estate, said prices might be nearing the bottom, even in higher-priced areas. Green has been shopping for a house for himself in the Pasadena area.

"Two years ago I never would have bought a house" in the neighborhoods where he is now shopping, he said.

Green estimates the homes he is considering have fallen about 20% in value since then, he said, which is far enough for him.

"I plan to live there until I retire, so if it goes down another 10% while I'm living there I will not care," he said.

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peter.hong@latimes.com