The US economy will be in good shape in the short run (next 2-5 years) thanks to external forces.

China has the 2008 Olympics.

Japan and West Europe based MNCs will buy US assets to hedge against their declining populations

friendly OPEC powers will keep crude low to squeeze Iran and to help USA.

None of this will prevent implosion in housing market. My personal view is that all those “buyers on the sidelines” will stay on the sidelines until prices decline. But buyers cannot expect the housing market to collapse because of macro-economic problems in the US economy. AT least not for 5 years.