Yes if it occurs in the markets with the largest asset value like here (LA, OC, SD), San Fran, NYC, Boston, Dc etc..You are talking about a massive amount of erosion of net worth. Far more, in fact no comparison to what the stock selloff eroded. Housing makes up a far higher % of personal net worth than stocks nationally.
If just SD dropped 50 and nothing else moved, then no problem nationally. I do not see how that could happen in isolation like that. I just want folks to take the emotion out of this.
We all agree a drop is imminent, but I do sense a general almost rooting for it tone. My basic point is, be careful what you wish for. Have a plan, but base it on hard numbers, not emotion. Then execute it when the time arises. Do not get to tied up in the negativity that will abound on this drop.
I love buying huge drops in things, because most people, even those who planned to do it, get scared when they are in the midst of it. It is not easy to do, yet it is opportunity knocking.
I just think people are under estimating how bad things will be if even a 30% drop occurs, that is a huge drop for an asset essentially “rigged” to go up over time. I remember how OC was during the last crash, and the drop was only about 20% basis the median.
