What will the price be for homes to get them back to the historical average in San Diego of 9 times earnings?
Wikipedia estimates 2005 household incomes to be around $64k, so if you were willing to say that the Clairemont demographics of people moving into starter homes have an average household income of around $40k, then the starter house in that area would revert to roughly $360K, so that matches your first estimate of nearly a 27% drop.
The other question is how long will it take them to get there?
