Perry, you bet, we’ll continue to rent, and have no intention of buying anytime soon (friends of ours rented their La Jolla home for five years, over ’89-’94, before the owner caved and sold to them at a great price after the owner had no success selling at an inflated price for several years). I’m just trying to get a sense, from folks who’ve lived through this before, whether it’s rational to expect home prices to crater 75-80% in select neighborhoods that experienced the most ridiculous run ups (down the street, a modest looking 2,700 sq. ft. home on a 0.20 acre lot just sold for $2.5MM in Jan. ’06; it had traded hands at $510K in ’97 and $615K in ’01). Absolutely, we just continue to save and amass ‘powder’ to buy at the right time and at a reasonable price. I’m just wondering if we should continue to have our our hearts set on buying in La Jolla, because home prices have a long, long, long way to fall before they reach ‘rational’ levels.
