This LA Daily News article about the San Bernardino housing market comes tantalizingly close, but in the end is unable to connect the dots. Their logic follows:
- California has been in a boom/bust cycle since the 80s (close enough, though the cycle actually began in the 70s)
- We are currently near the end of the boom part of the cycle (absolutely right)
- This boom has been the “biggest equity generating run-up ever” (absolutely right)
- Conclusion: prices won’t go down, they will just stop going up so fast (what now????)
How they combine 1, 2, and 3 to get to 4 is, as you might imagine, entirely beyond me.