Even here in SoCal, we are seeing a drop in prices for the family type horses. It used to be that if you wanted a nice family/trail horse under age 12, you could expect to pay in the $ 4,500 to $ 6,500 range. Now they are selling in the $ 3,500 to $ 4,500 range.
This is a definite change from the last few years. Of course these aren't the really cheap horses you see other places, but in the past when the market has been down in other parts of the country, it hasn't been down in SoCal.