On a less technical analysis, we can simply look at the role that psyschology has played in this last run up in prices. Many buyers the past 5 years have purchased because of an expectation of appreciation, often an expectation of rapid appreciation. No analysis, no thought to whether they can afford the payments, just a desire to ride the wave up. The reverse of this is a huge factor that will now drive the market down and is causing buyers to dissaprear. IMO it has the potential to drive the market much lower than a more technical analysis based on previous bubbles may indicate. You simply cannot compare the speculation factor this time around to previous bubbles, can you?
