I agree HLS. The psychological effects are just starting to take root. The public is only starting to realize what most here have been saying for years now. They may not expect a 50% correction like some do, at least in some areas. They probably expect 10-15%, but the game is over.
The damage is done, and things are different this time. This time, consumers have no savings, are maxed out on credit, both parents are already working, loans are getting harder to get by the day, inventories and foreclosures are at all time highs, the negative effect on jobs is just starting, and so on and so on. All in all I’d say it’s far worse than the last downturn, both in scale and in factors contributing to the decline.
As these factors take hold people will be more hesitant to buy, drive prices further, and if it’s anything like the last two downturns, prices may go lower than they were when this started 4-5 years ago. That is of course unless incomes across the board double in the next 6 months. I forget, did that happen last time?