Yes, I remember a few months back, someone here wrote that he was thinking of selling his house in L.A., then come back and buy again in six months to take advantage of the expected price drops! Make that six years, I’d say.
As we know, house prices are notoriously sticky on the way down, and a big chunk of the needed correction will be in inflation-adjusted dollars (this means that in some years house prices will be flat, while wages, consumer goods, even the Euro become more expensive).
Prices will drop, that we know for sure, but it’ll be a long and painful process. Houses will remain overpriced for many years, although prices will be gradually less and less “excessive” until we slowly reach a point such as that of 1996.
