Also we are in the edge of hyper-inflation(ex foods prices) with all this fiat money floating out there..Then deflation....And we are seeing the beginnings of that in Real Estate...People who have money will clean up in Real Estate and people in debt and owing on Real Estate will lose their shirts..as values will collapse.
Not sure what you're seeing, but I think any current lower RE prices only reflect a general lack of confidence in the future/economy. IMHO, when the economy recovers, RE prices will ratchet back up at the same time.