we have an area here in SoCal that's called Carmel Valley. Lot's of McMansions there and the homes are mostly above $ 1 mill. There are some foreclosures, yes, but compared to poorer neighborhoods, the foreclosures
are few. In fact, resale value has been higher than in most other areas.
Another area is closer to the Mexican border, new housing developments for
the lower income brackets. There you can see rows and rows of foreclosed
houses. These are mostly first-time buyers who - with the help of greedy banks - were led to believe that they can make it. The first couple of years they got a low rate and paid interest only, and then when the balloon payments
were to occur, the banks coerced them into believing that they easily could refinance and lower their mortgage payments. Unfortunately, that did not happen, people couldn't pay their mortgage and the rest is sad history.
So, from what I have seen out here, the McMansions are still holding strong,
it's the lower income neighborhoods that suffer tremendously.