in my view, about 25% of the current price of homes in SoCal is what I like to call “pure fluff”. That is appreciation purely based on speculation and mad lending. This fluff will be drained off VERY quickly, prices will drop over the next 6-9 months like a drop from a cliff, because the factors responsible for them have been turned off in one shot…like turning off a faucet, like cutting off the air supply etc. etc.
To those who say prices can’t drop that much in a year, it’s incorrect. For example during the early 90s Austin dropped 20.1% in a single year 😉
