First it was the new home builders last fall who said a turn around might occur in 2008 which was more than a year away.

Now it looks like 2008 is the earliest for San Diego home resales. I bet new home builders are wondering if 2008 will be down as well.

If it remains relatively slow, the air is let out slowly. We’ll probably see another 5, maybe 8 percent drop in the medium price of homes. If things come crashing down, meaning we actually go into recession, unemployment rates rise, there’s a lot of job losses in the San Diego area. We’re likely to see a 15 to 20 percent drop in home prices.