To put things into perspective: After the peak in December 1989, prices in Los Angeles fell 41.4% over about 7 years, in real terms (adjusted for inflation)… In 1990, real prices had declined 9.3% during the first 12 months after the price peak. For the current bust, real prices have declined 12% for the same period.
We are far from those levels so far. However, the next few months should prove interesting as retails have been less then stellar with the holiday shopping and gas and food still take a big chunk out of individuals’ economy.
