We must not forget that most of us Piggingtonians are salmon swimming upstream. I agree that things will get worse this winter. However, there are many forces working against us. There are many factions that want, and need, to see home prices NOT fall dramatically (as they should). Realtors, banks, politicans, government, media outlets, developers, contractors, etc. They just have too much invested in it. I truly feel that we are in the minority.

I am not saying that things will continue to get worse at a faster rate. I am merely saying that there are many in powerful positions that will try to keep this thing from dropping too far too fast. A Fed interest rate cut or two, dropping oil prices, substantial incentives on autos, the classic media-real estate propaganda, and more will all be employed in full force.

We already see it going on around us. Every normal-thinking person has at least some idea that homes are overpriced, and that they can’t realistically afford them without incurring major long-term debt. Yet, even as prices have more than tripled in some places, we are still being told by some sources that there is just a mild correction taking place – that prices will start going back up again in the spring! Hey, I don’t mind an asset appreciating. My only concern is that wages simply aren’t keeping pace. If I earned 3-4 times what I am currently earning I’d be more than happy to purchase a home at current prices. The money has to come from somewhere, right?