The previous 2 corrections in the graph took us to a bottom, before settling at median.
I expect this correction to be the same way, in terms of settling at the bottom.
We may overshoot bottom because we have 2 new factors this time around: borrowers loaded up on adjustable mortgages at a time of historic low interest rates and will be forced to sell when those loans adjust, and our economy is much more dependent on real estate. Let’s also consider the global liquidity bubble. It made this RE bubble much worse. OTOH, can it save its decline?
