This is a good debate to have and I suspect that the truth will lie somewhere in the middle. I think 50% off current levels is crazy but prices do seem to be still dropping.
If this listing closes at list, it will be at 48.5% above 1989 price and it looks like the place has had upgrades. That puts the appreciation rate at around 2% a year. In 1989 interest rates were roughly double today’s rates.
50% from this price will put it at 350k and that would be less than $100 a foot for Carlsbad at a time when interest rates are what 7-8% at the highest? I think at this price the downside on this property is 100k at worst which would probably be around 00-01 price or lower.
