Southern California home prices are approaching 1989 levels. Calculated Risk thinks that 1979 levels are possible after the next foreclosure wave hits.
Imagine: 30 year deflation in housing prices.
And in the Inland-Empire where suburban ghost towns were left in the wake of the housing bubble, the vacant housing is not just a sign of the foreclosures but of overbuilding.
If prices go down far enough they could just overshoot the prices set when Proposition 13 was passed in 1978.