Where o where can the bottom be? O where o where can it be-e-e-e?

No doubt you'll be hearing people say: "Now's a great time to buy! Prices have rolled back five years!" And they have rolled back about five years, at least in the flat parts of Sherman Oaks. Behold an average Zestimate graph for the area:


But does that mean it's a great time to buy? Well, I don't think so. Because check out the graph of that same house for the last ten years:



Yeah. Uh-oh! We've got another price dump coming up. The credit crunch and the DOW are strangling out even the most obstinate buyers and so I am pretty confident that another round of meaningful reductions will come. I'm recommending not buying for another 6 months minimum (but I suspect we've got another 12 to 18 months to get serious about buying).