I pretty much agree with Batsleft’s statement – “If something goes up in price 150 percent and then goes down 10-15 percent, that is not a bubble, that is a serious runup in prices followed by a relatively minor retrenchment.”
Even if prices were to drop 20-25%, which I don’t think is likely, I wouldn’t exactly call that a bubble bursting.
Now, if inventory levels in San Diego reached 45,000-50,000, similar to what Phoenix has now, we would have an incredibly big problem. But it seems like inventory has leveled off in the past month, stuck around 23,000+ as measured by ZipRealty. It will be interesting to see where inventory levels are at this fall and winter.
