One other thing about Temecula. Prices have already fallen by 15% in a number of neighborhoods and we’re only at the beginning of the downward spiral so my 50% doesn’t sound as crazy as it did a few months ago. Only 35% to go.

2007 is going to pull the rug out from under this housing bubble due to massive foreclosures and distress sales. I think by this time next year prices overall will be down at least 30% from the peak. But that still won’t be the bottom!

There are going to be possibly > 2,000 houses foreclosing just due to the Stonewood “investment” group alone! Patience!