Bugs, is it fair to assume that each area will revert to its own mean, i.e. the price it would be today if it had followed the rate of inflation. So National City went up a greater percentage than La Jolla, so it will fall a greater percentage as well. Also, La Jolla will maintain its premium over National City. However, the percentage increase this time was about double or triple (?) of the last bubble, so the percentage decline will be double or triple of the last bubble as well. If London prices could go down 60%, so can San Diego’s.
