I think that 6% per year is waaaaaay to much to expect. If you can get 2% to 3% per year when things in the overall housing market are normal, you’re doing OK. I think that your San Marcos example could be as high as $310k or as low as $225k (if we have an over-correction). Right now, it’s a crap shoot but the odds are in your favor that prices are going to continue to drop for at least two more years. (I think they’ll continue to drop, well into 2012)
