Road Map of Market Recovery

I am a member of an organization called STAR POWER, which is a real estate education company. One of the other members, Denny Grimes, used this graph for a presentation and I thought it was right on. This is what he said about it: I believe this graph explains the behavior of any bubble market, sub-market and even an individual decision process before they make purchase. The length and the angle of your market's path may vary, but all markets will fall below "rational value" before they begin seeing price recovery. Price recovery or even an individual sale will not take place until confidence enters the market or the mind of the buyer. When a buyer feels confident that the property they are looking at is a good value for them, they act. When this happens in mass, the market will shift upward and begin driving prices back to rational value.