California Real Estate Prices: Boom and Bust

This comes from Calculated Risk: Today I heard someone comment that California Real Estate never goes down. In fact, California RE has declined in the past in both real and nominal terms. In real terms we have seen two declines since 1980. The first decline, in the early '80s, lasted 3 years. The second decline, in the early to mid '90s, lasted 6 years. The decline in the '90s lasted 24 quarters from peak to trough. It took 9 years for prices to recover in nominal terms to their early '91 peak. Overall prices declined 12% in nominal terms and 26% in real terms.

Calculated Risk: California Real Estate Prices: Boom and Bust