Consider housing bust + big recession + massive unemployment + overhang of inventory + tighter credit. I’ll suggest ’99 era prices are not out of the question.
What I think the moderates here and in the media are missing is the interconnectedness of the housing bubble and the general economy. Yeah, we will have a soft landing if there is a housing crash with zero spill-over. Somehow I don’t think that will be the case.
Consider, for example, all the layoffs in the financial and construction sectors (which are just getting started). Who is going to hire them?
