Excellent synopsis ! The point you make about MARKET PSYCOLOGY is HUGE. I have been thinking that once the music stopped ( August 05 here in LA ) and everyone wondered where all the chairs went. Plus, the lagtime, denial, realtor hype, economist hype etc.are factors. The MSM is another MAJOR FACTOR in driving the herd, just as in any speculative bubble to GET RICH QUICK. If history is correct your 7-9 year time frame will be correct. However, IMO the boom has been more accelerated this time around if you look at any of the graphs especialy since 2004. Also we have MANY people with nothing invested that can walk away, like they have rented a house they could never have afforded. I agree it will linger for years, but I see the big drop 30-35% (already dropped 10-15% here in LA )during the next 2 summer selling seasons. Still looking to here about LA JOLLA as I am not in touch with that market. Anyone out there sense what a starter might be priced at in the next couple years ?
