“I predicted a long period of stagnation that will in essence bring us back to Year 2000 prices. ”
What do you mean by “in essence” ?
Do you mean:
a) nominal 2000 prices ?
b) inflation-adjusted 2000 prices ?
c) Price-to-income ratios at the same level as 2000 ?
d) Price to rent rations at the same level as 2000 ?
e) Some other metric.
I personally don’t think we will see year 2000 nominal prices broadly across San Diego. Primarily because mortgage payments to rent is very favorable, and price ratios are not that far above long-term trends. However, I do think we will see inflation-adjusted 2000 prices.
Actually we essentially hit that mark already in the C-S index in Spring 2009, and may cross it again or dwell around that point over next few years.
