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Dead cat bounce, or at least slowdown in the decline, that's exactly what happened in So. Cal. in 91/92 (which was 2-3 years after the bubble peak in 1989).
Like is happening now, in 91/92 prices had declined quite a bit from their '89 peaks. Real estate agents were of course saying the decline was over, prices are way down, etc. etc.
Prices in So. Cal., however, continued a steady (but less steep) decline for another half decade, until 1997. Prices did not start a sustained increase until 1998.
It's the same situation now. Thinking that the Biggest Bubble in the History of the World (in the bubble areas through the US) can or has deflated in 2 years is just not realistic thinking.
No doubt, there have been some major declines already, I'd think that many, many houses in San Diego, Orange County, Riverside and LA have already gone down 25-30% in value, if not more. But they easily can (and will, IMO) go down 10, 15, 20, 25% over the next 3 years, then bounce along the bottom for a few more years, before there is any sustained increase.
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