Stop comparing apples and oranges.<p>Notice he uses cities outside of the Bay Area for his speculation graphs. Phoenix and Dallas are like SF? S&amp;L crises much?<p>&gt; Whether you are looking at a home in the Mission or Pac Heights, or even Palo Alto, these assets are all deeply connected to the same fundamental economic system.<p>No. This is not reality. SV and SF are complete outliers. After the dot-com and 2008, price drops here were not at all like they were for those other &quot;bubble&quot; cities. US fundamentals and SV&#x2F;SF fundamentals are two completely different realities.<p>When the &quot;bubble&quot; bursts, the only thing that will change is the Z-Estimate will be less than 20% over list price. The list price will still be unaffordable to 95+%, and that will not change until the quake.