Yeehaw!! This is WHAT must happen to correct the inflated market.

When we have people going back to basics and saving up with 20 % downpayment then prices will come back to normal.

I cannot wait for the credit bubble to deflate so that I can afford a home with a normal fixed rate loan and at a decent price. To me, San Diego homes should cost no more than 300k in most areas and even ocean front property is not worth 2-5 million either.