Yup, I’m with Rich word for word. I’m a major real estate bear and on the fundamentals ALONE you could come up with lots of otherwise logically bearish conclusions. But having lived through the Greenspan era as an investor, one can never ever underestimate to what ends the government will go to defer economic pain into the future. Nothing is out of bounds, I’d say. Thus, a 30%-35% decline in the median price seems about right to me, as I’ve posted before. I don’t, however, trust the government to let the market get to a “true” equilibrium over the next few years (such as a 50% decline). After all, we never reached equilibrium on the Nasdaq (well, yet…), why should the housing market be any different?
