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In the 1990 cycle, the LA prices peaked at about 60% above the mean. In 2006, they peaked at 170% above the mean, or about 3 times what they did in 1990.
I expect the reversion point will be about 400-425 and will take about 7 years from the peak, a little longer than the previous cycle. Think Tokyo in the 1980's. The next uptick will be about 15 years from peak, after baby boom echo (Generation Y) start to mature and buy houses (10 years from peak).
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James
The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994)
Red-beard for President, 2020
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