The Anderson UCLA Forecast for CA real estate doesn’t dismiss this outcome. With 50% increase over the past couple of years who is actually at risk in a 50% decline? Those that purchased recently and those that took a bunch of $$$$ back against equity. Hardly a crisis for someone that has been in the game for 4 years without jerking $$$$$$ out!

If the 50% decline occurs over the next couple of years and inflation ticks up to say 6% that alone accounts for ~15% of the nominal 50%.

Statistical analysis has been done that calls a 50% decline a mere correction based on the bubble’s magnitude and speed at which it ballooned…