Still, I think 60-80% is something that we would only see in a very extreme situation related to — you name it — a true depression, national catastrophe, nuclear calamity

There was no nuclear war that I remember in London in the early ’90s. There was a mild recession ’90/91 related to high interest rates. My property still lost 60%+ of its value. The market essentially froze – no one was buying or selling unless desperate. The phrase ‘negative equity’ was commonplace (you owed more than the house was worth). There was talk of a government bailout – it never happened. Problem was any buyers that existed headed for affordable property close to their jobs. Maybe Temecula is different and there’s huge industry up there I don’t know about…but if a lot of people live there and work in San Diego, good luck.

Why is it people can accept a 60% RISE in value as normal, but a FALL back to the original value takes a nuclear winter? We ended up at 1979 pricing in London as things overshot the other way and then recovered.

The train wreck took maybe 5 years to unfold. We’re in year 0.5 and I’ve already seen 10%+ price drops.