Lots of good points here. One thing that will be interesting is to see how many of those folks that are in good shape mortgage-wise (bought 2003 or earlier, fixed-rate mortgage, not too much heloc, etc…) have jobs that are dependent on the housing bubble. Finance, mortgage, banking, appraising, construction, etc… Although they weren’t irresponsible in their purchase or finance, they still may end up in a must-sell situation based on job loss or downsizing. Could take a while though especially if they raid their home equity or 401k to ride out the pain.
