What I see happening right now is that we are rebuilding the stability in the housing market from the bottom up. People are buying homes they can well afford at the entry levels. The higher priced homes still have some depreciation ahead but that will be limited by the stability at the low end. Eventually as the middle and up reach stability (a few years from now) we will have affordable entry level homes and homeowners (not homebdebters) that have been in them for several years and now have substantial equity in them. When these folks decide to move up they will have the means to and voila!!! Back in balance.
