I think we’ll be lucky to have the Japanese scenario unfold here in the US. Dont forget, Japan was still selling a lot of their products to the world as their credit markets were zombified. We dont have that luxury. We have wage arbitration keeping a solid lid on income/job growth in the US while at the same time credit is being constricted.

Put those two factors together when considering the future of home prices in the US. Income stagnation or loss with the constriction of credit. This will probably keep downward pressure on home prices for quite a while.