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During the last half of the 1980s, Boston home prices rose by 73 percent while incomes rose only 42 percent. A recession and attendant correction resulted in an 11 percent drop in home prices that did not recover fully for seven years. During the late 1980s and early 1990s, Los Angeles saw an 89 percent increase in home prices and a 37 percent increase in income. Soon afterward, defense-industry cutbacks precipitated a correction that reduced house values by 24 percent in L.A. over a five-year period. It took another four years to recover.
These bubbles were regional. During the same period, Minneapolis, Chicago, and other cities continued to experience uninterrupted increases in housing values.
anyway my prediction is in many areas vegas california florida arizona and the north east will suffer a 10-20% drop in price and it will take 5-10 years to recover that ammount !
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