I have a good friend in San Diego who has been a mortgage broker for 20 years and is an eternal housing optimist up until August. He told me a few weeks ago that the average person who comes into his office now overestimates their equity by at least 100K and that’s before the realtor commission. Believe me this guy is probably being conservative, the average San Delusional homeowner has a lot less equity than they care to believe at this point.