I agree with Thadeus. If a buyer is purchasing a property to make as their home, they need to stay there for a number of years. The value will always experience ups and downs over several decades. One problem we have in CA is buyers believe (wrongfully so) that when they do buy, values will go up, up, up! Not true. The other misbelief most CA homeowners have is their home is an ATM and they can pull money out whenever they want - also not true. In CA, homebuyers tend to finance as much of the purchase price as possible and that's why we're in the situation we are. I suspect many folks in this subdivision have paid cash, many have small mortgages and some have pulled every dime out of their properties, plus have an adjustable mortgage, and are probably facing huge increase in their payments.
I would certainly expect someone who bought in a higher-end area such as this would certainly have had the where-with-all to understand the market and its up/down cycles.
Just for "grins" I looked at that entire subdivision and, of 500 properties, only 7 are in pre-foreclosure, and only 3 have actually been foreclosed upon. This is far better than the National or California averages.
Best of luck,
Broker / REALTOR
Orange County, CA