In markets like SoCal (perhaps Vegas also?) that tripled or more, when we’ve reached 55-60% off peak, then we’ll have returned to the trend line and deals/prices may be getting reasonable, though we may follow the typical pattern of overcorrection and get even cheaper for a little while. Still, even if you miss a bit of the overcorrection part, buying at the trend line hopefully won’t kill you in the medium to long term, while buying at 30% above the trend line (where we are today) may take 10-15+ years to recover just to zero equity.

http://www.foreclosureexpert.info/2008/04/a-tale-of-two-h.html

This is a wonderful example of the importance of Timing. The Location is the same (Las Vegas.) Timing is a reference of Affordabilty…the peak of 2005 vrs. the down market of 2008. …….”Time is Money”

…Food for thought…
Sure Location is important…right? When you take affordabilty into account why aren’t more buyers purchasing now (Buyer’s market) especially when you consider the sheer number of homes available from which to choose ?(Supply & Location)…

What determines True Affordablity? Is Afordabilty determined by one’s monthly payment (& whatever type of loan one can get) or is Affordabilty determined by the actual price one pays for the house?

What causes more homes to be sold during a “Seller’s Market than during a “Buyer’s market? Could part of the reasoning be that properties appreciate during a “Seller’s” market and prices go down during a “Buyer’s market? Thus, during a “Seller’s” market the property becomes more desirable creating more of a Demand? Also, during a “Seller’s” market there is less inventory as compared to a “Buyer’s market. What affect does the scarcity of homes on the market have on the Buyer if any?

How much does the “Mood of the market” affect pricing? …………..Why?……If so, then what “Mood” creates the most Affordable time to purchase?

The “Media”…What affect does the “Media” have on the “Mood” of the market?

Thank you for continuing to include % off from the peak. It seems like everybody is hung up on YOY differences, but those aren’t useful as a global indicator of where we are in the bubble’s cycle.