Thats exactly the way I see it Kev. I can tell you that I am seeing some anecdotal evidence of a slow down in my business which is not directly related to RE. My customers who are basically distributors are belly aching right now. I am talking with my peers in California and we are seeing a definite softening.
Those numbers are alarming and they should be alarming to each sector of housing. Basically the plankton of the housing food chain is disappearing. Regarding home prices falling I keep on remembering my statistical analysis class I took in college. Prices are always a lagging indicator. You will more than likely see the steepest price drops as actual RE investment bottoms and improves. Thats what happened last time.
