Ditto on first comment, but remember this is an ideal result of the plan. When have government sponsor plans ever really work out as planned? The best case result would be that the price declines slow to a reasonable rate until the historical income/home price ratio hits (Most likely over shoot). I believe San Diegos is 37.5 %.
There maybe a dead cat bounce for a bit after this plan is formally announced and spread among all the media outlets, but I really believe nothing will stop the price correction from taking place after such a huge upward price spike that lacked any fundamentals at all.
