Can you list the reasons why you think that house prices rose so high during the housing bubble?
I can think of: 1) gov’t handling of low interest rates and keep all these years after 9 / 11 2) The advent of any new loan programs that are now so easy for people, Adjustables houses teaser rate mortgage, the former would have found unaffordable. 3) The subprime mortgage and therefore no income verification no assest verification, no money needed. These three factors have created and increased demand for housing and speculation by investors that increases in housing price in cash. Now of course the question .. is to be with the credit crisis on greedy lenders and credit supply and prices, is how low will the real estate crisis?