Agreed. Crappy condo conversions are likely already at 2003 prices. McDevelopment properties that went up in the last 5 years are already at 2004 prices. However, I have yet to see data that indicate to me that SFRs in established neighborhoods (e.g. central and central coastal) at those prices. At 2003 prices, many properties in these established neighborhoods would produce positive rental cash flow, so I don’t anticipate moves below that point. Then again, I’m only expecting the usual post-WWII business cycle recessions such as the early 1990’s or early 1980’s, not a ’30s -style depression.
