I don’t know about most people but for myself, when I buy, I’m not locked into a size range but rather a price range. So, lets say I’m looking to buy in the $500k range. 2006, that would fetch me a 1500 sq-ft house. But in 2007, that 1500 sq-ft house is now $450k and the 2000 sq-ft house is now $500k. I wouldn’t be buying that 1500 sq-ft house for $450k but rather the 2000 sq-ft house for $500k. The point is that, median won’t be dropping very much because people like me don’t decrease their price range, they just get bigger better house at the same price range they’ve been looking in for the last several years.
