[img_assist|nid=7327|title=Shiller: Historical Housing -Bubble|desc=”The clear implication of the chart is that normal prices are around an index value of 110, the value that reigned for nearly fifty years (circa 1950-1997). So if the massive run-up in house prices since 1997 was a bubble and if the bubble has now been popped we should see a massive drop in prices.” Robert Shiller,2006|link=node|align=left|width=466|height=379]

SD is so overbuilt in some places, that the only thing to support the current prices from falling much more would be some fantastic industry that boosts the median household income by 50%.
There is nothing like that in SD. Businesses cannot operate in a place where the housing eats up all the wages.

The previous housing US declines (and Japan) should tell us how long this takes to run its course. It appears this time it’s worse. I keep thinking 2011 will be around the bottom but then Japan took 15 years to turn around.