- Real estate prices will not rebound any time soon as housing follows cyclical patterns.
- The recent boom from 1997-2005 that saw 150% appreciation was artificially extended by low mortgage rates and loose lending practices.
- Previous cycles, like the 8-year downturn in the author's home area of Southern California from 1989-1995, saw 20% declines from peak to trough as the market corrected.
- The current market is still in the fear and pain phases of the cycle as speculators have disappeared, prices remain stagnant, and excess inventory needs to be absorbed before a recovery can begin.