Psychology on the buy-side is of course most relevant in a situation where someone has the means to get into the market but may choose not to. This is where things get interesting. En masse, how long will those who are able to stifle the seemingly inherent urge to own their own home be able to hold off on buying?
The folks with the means to get in who do so won’t affect things much. Most people don’t have the means, not at today’s prices or anything near it. Prices will fall until they are in line with what someone with a normal income can afford. Afford in the traditional sense, that is, not with nonsense financing.
