California - Boom or Bust

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Hello all, 

I understand real estate cycles are market specific, but I've always been curious about the reference to California as a "boom or bust market." Is the term "boom or bust" simply reference to appreciation going crazy during booms, and then declining rapidly once we reach a recession or hypersupply? 

It makes sense to me that "boom" would refer the the large increases in equity that can happen over night, and then be lost in a "bust" almost instantly.  

If anyone reading in California has been through a few market cycles, could you please let me know how bad the busts have historically been? Is there a percentage that home values typically fall?

I'd appreciate the info. Thanks in advance!

-Taylor