Secondary Bubble Markets

At first the speculators bought up in the orginal bubble markets (San Fransisico, LA, San Diego). Now, speculators have descended on other real estate markets and turned them into bubbles. Places like Bakersfield, Merced. These are secondary bubble markets. In fact some places like Bakersfield are likely to see more of a price decline then the primary bubble markets. Why? Since, the primary markets still have supply constraints and a solid number of high paying jobs which the secondary bubble markets do not. Furthermore, the degree of speculation is larger as some speculators get priced out of LA market they may move on to cheaper markets. The percentage of speculators is higher in many of these secondary bubble markets.