[quote=scaredycat]is it equilibrium or a sudden fake halt to the inevitable? It seems like there’s a lot of risk involved in an inherently unstable, falsely balanced set up that doesn’t depend on nomral market pressures. Some external shock, any shock, could be enough to destablize such a jerry-rigged system. [/quote]

I don’t know anything for sure Scaredycat. Just looking at the various potentialities like anyone else is.There is a ‘war for the floor” going on. A lot of air is out of inflated prices.
With all due respect to data, there will never be a complete lack of instinct in getting these calls right …or failed instinct in getting them wrong.

Before I get slaughtered I’ll say, it’s not a big deal either way. No one has to buy a house and if anything, I think the market will become more stable, maybe after some lesser hiccups. Obviously prices for houses that are very expensive for the average joe, like me, will continue to compress down.

There is still a good deal of price declines to come in a spread of less expensive houses too. It is a little tricky to try to discern which and to what extent now. I think it is approximating “no big deal” status for many.