Nice wiki link.. Notice at the bottom they have a link to the wealth elasticity of demand… I think the elasticity concept in economics best describe what the effect and reactions to the housing deflation will be… it’s how people make decisions when they aren’t dictating the pace.. they have to be ‘flexible’, and divide their decisions into needs and wants.

I predict ‘cut your losses’ will be the phrase that replaces ‘i just refied’ phrase of the last 10 years..