Many good points on the posts here. I think that significant wage inflation say 10% in the next year could really bouy up the market. If a significant percentage of the population moved into the affordability range. Yes that would help.
Not a very likely scenario in my opinion. But it is good to keep an eye on the affodability and risk indexes. They take this all into account.
Like the PMI Groups reports. Latest was back in Fall 2006 and showed San Diego topping the Risk Index chart ( 60% chance of a price correction )
