The permabulls will only respond to dramatic, real-time price change data. For example, if the median P/SF in San Diego falls by 10% (or thereabouts) this year (and next) – that will be real and undeniable. Anything else is just conjecture in their minds.
Lots of internut investors were buying the Nasdaq at 4500, thinking it was an opportunity to buy on the dip after the index had been at 5000. When it had declined to 2500, the permabulls were nowhere to be found. The same will happen with housing, albeit on a different magnitude.
