Bob – People get divorces and lose jobs (and get nice offers in Chicago, Atlanta, etc.) There are other reasons why people put houses on the market besides financial distress on the one hand or wanting to trade up to a nicer McMansion.
Lady – Yeah, 50% is harsh. However, if I remember correctly, rents also declined slightly during the last bubble-burst in SD. With lots of supply of sfr and condos coming on-line, rents may go down. So, going rent may be going down. Just for the record – I’m with you…50% in nominal terms seems unlikely (though, inflation adjusted in 8 years?….who knows….)
