Yeah…………….And……………..
*The Great Depression never happened
*An engineer will be standing at the finish line with a slide rule and will carefully measure the slide of prices against inflation. He will raise a checkered flag and tell everyone when the bottom is reached by using a formula.

My point was that prices will fall to where they’re going to fall and they’re not going to adhere to a scientific formula. The economy, inventory of homes for sale, affordability, availabiliy of mortgage money, public trust in the housing market, etc. will determine the level that prices will fall to. They may be 2003 prices or they may be 1995 prices……………..nobody knows because this bubble is different in so many ways from past bubbles.

Have you taken a hard look at the Temecula area lately? You realize that is only a short ride up Hwy 15 from San Diego, don’t you? Think that won’t or can’t happen just down the road?

We have never seen a mess like this since the Great Depression. The job losses are just starting and there’s a gazillion foreclosed homes on the market (plus a lot more coming over the next few years). You can poke fun of the uber-bears who think that this is going to be a real tsunami but let’s just all agree to come back here in four years, take a look at the housing market in SoCal and see “who’s the doofus.”