The price of housing is predicated on the ability of the populace to pay for it. We could have a devaluation of the US$ while the populace cant afford to pay for a house. I think that basically, the US would need wages to rise in order to support house prices. If this doesnt happen, then prices have to come down.
As the govt spends more and more money, this will weaken the US$. Now, does all this govt spending result in wage increases? Or just sustaining the economy to avoid collapse?