based on RE cycle...Thanks

It's a cycle that needs to be understood and I understand that in the bay area it is not too likely that major employeers are leaving in droves or going out of business.  

@Sean Dawson - Just my two cents, this is not the forgiving part of the business cycle and probably not the time to over stretch.  

I prefer IRR to see the full picture for the entire life cycle of the investment.

It can take several years before the prices come back up to pre-drop levels, and then as per the usual cycles, continue higher.  3.

I've also been led to believe that southern climates have a lower expense ratio than northern climates.In the South ( Coastal and Urban) we tend to have larger swings on the value cycle.

It may be cyclical in CA, where no one can forecast the cycle either BTW, but you guess wrong and buy in during the wrong cycle and its bye bye birdie for an investor.

I have found 10 years fixed is plenty of time to move with the economic cycles.

be solving the "home buying" (and reselling, after the coming 'correction' when the market cycles down again) issue for the MAJORITY that STILL cannot 'qualify' to BUY their own home, along with the MILLIONS (x10?)

"Buy and Hold is the only way to beat the Market cycles in the longterm."