I believe what’s different this time it that the slump will be deeper for the following reasons:
1) Thanks to the Internet, people have much better access to data so the knowledge that prices are down will be widespread. In 1990s I had to rely on my Realtor to give me data.
2) Our society has become much more mobile so people will need to move for different reasons. People are now using their homes as stepping stones to better homes, and they won’t want to be ride out the market in “undesirable” houses. The divorce rate might even spike putting even more houses on the market.
