Just because the CAUSE is different now compare to the 90s doesn’t mean that the decline won’t happen. It already happens in some area. The cause today is not job lost but tightening of credit and proliferation of exotic loans. We haven’t seen loose lending like this since the great depression. Also, we never enter a declining RE market with an all time low interest rate. Examples are right there in your face if you just look. In 2005, a 1500 sq-ft condo/townhouse in Carmel Valley was going for $650k. Today, the exact same model just got listed as bank owned for $536k. How’s that for 20% drop over 2 years? A 2100 sq-ft house in MM in 2005 w/ canyon view were going for mid $700k. Today, many are listing in the mid $600k with no taker. How’s that for 15% drop over 2 years? I can go on. Some drop faster/harder than other but no area is immune unless it didn’t experience crazy appreciation over the last 7 years.
