It may be an overcorrection, taking into account inflation and the value of the dollar. Personally, I don’t see it as much of a stretch. It seems more likely (and more logical) to me that prices will follow past trends and current downward pressures than to only go down another 10% and level out, while every other market continues to tank. It’s never happened that way in the past, and I just don’t think the coast is that magical.

The changes in the U.S. dollar haven’t prevented prices from reaching 2000-2001 levels in other areas, and those areas are still dropping.