KEV,
I’m not sure how old you are or how long you’ve been around So Cal RE, but you are right on.

The ONLY reason that the housing bubble inflated was that the govt “allowed” 100% stated income financing.
They allowed it because it was “good for the economy”
We would probably have gone into a depression after the dot com crash and 9-11 if rates hadn’t been lowered

It wasn’t Greenspan, and it wasn’t the low interest rates, it was NO DOWN payments to anyone with a pulse.

We are headed back to a situation where you need a 10% down payment, and low interest rates. When the prices get back down to reality the markets will stabilize.

The financing in 2002-2006 was stupid.
The house prices between 2002-2006 became stupid.

You cannot have stupid market prices without stupid financing, and the stupid financing is gone FOREVER.