Yes, it was a huge bubble but the excesses in terms of price have mostly been wrung out. The nasdaq peaked at around 5000 and is now back close to 3000 so that is 40% down from the peak. Realistically if you look at sales prices and not wish prices, 40% off peak pricing is about where we are now in housing. I have seen a few places in decent parts of Point Loma go for nearly 60% off of peak pricing but they seem like oddball deals.
At this point there still remains considerable distressed inventory but frankly how much of it is in the desirable areas? When considering interest rates the current prices seem reasonable and will be a good base to rebound off of (albeit at a more gentle pace) once the economy and job market recover.
