My thoughts are that there is a definate bias out there already in the public and the media the other way, towards the ‘soft landing’ theory. As proof, I am willing to bet that the average person out there would subscribe to the notion that prices will just ‘level’ off, that any downturn will be ‘brief’ and that interest rates probably won’t go much higher. They would probably also tell you that the economy is strong and we need not worry since this is such a desirable place to live, there is a finite amount of land etc. I do agree that people tend to find reasons to back up their preconceived notions, but when it comes to home prices falling most people are dillusional and still believe that they will either keep going up or just level off. In fact, they are already falling.