[quote=cantab][quote=sdrealtor]FWIW houses that i have seen are not close to 2X’s 1996 prices adjusted for inflation. Maybe 2X’s 1996 prices but not adjusting for inlfation. Not sure if that is what you meant to say but its not the case that i can see.[/quote]

In Pacific Beach and La Jolla, houses are selling easily for three times their 1996 or 1997 prices. 3x nominal equals 2x inflation-adjusted, approximately.

Here is an example:
http://www.redfin.com/CA/La-Jolla/1110-W-Muirlands-Dr-92037/home/4916121

1110 West Muirlands Drive in La Jolla sold for $340,000 in early 1997. It had languished on the market for many months. Ocean view, backs to golf course. It’s had a major remodel since 97, but not recently. In 2008 the owners listed it for over $2M. It didn’t sell, but it would sell instantly now at over $1M.[/quote]
To backup sdrealtor’s point:

http://www.sdlookup.com/MLS-100030782-920_Santa_Queta_Solana_Beach_CA_92075

Sold in 1994 for 318k, 1996 for 407k, currently asking 789k. It also have ocean view. Looks like it was recently remodeled too.