I looked at a home online last night in Santa Fe Hills in San Marcos that sold for 650k last July. The same model is now for sale for 559k up the street and not selling. 14% less than the comp, and unsold. I bet the people who paid 650k thought that they were sitting on alot of equity too. To really get this crash going we need the depreciation to go deeper, well into the people who think they are now safe. It’s easy to wrap your mind around a loss of a few percent, like the 2% that is now being reported in the news. Much more difficult to accept the fact that your nice 200k cushion has now disappeared! Once the masses panic it is going to really go downhill.