Home › Forums › Housing › 70% Correction in San Diego › 70% overvalued and 70%
70% overvalued and 70% correction are not equivalent statements.
If a house is presently worth 170k but its intrinsic value is 100k the property is 70% overvalued. But a drop back to 100k is a 41% correction.
An analogy is a stock increasing in value by 100%. A 50% reduction takes you back to the original value and a 100% reduction takes you to zero.
Sorry to be anal but your headline exaggerates the situation.
Take care
