While I don't buy the doomsday scenario, I do acknowledge there will be a correction.
How on earth can a real estate market be sustained when average household income is $48,000 and the average house is $300,000? Simple math says that doesn't work. The take-home pay on that income is about what the mortgage payment is on that house unless they have a HUGE down payment...which, on 48k a year, how much can they really have?
I know of someone who "bought" a house but she is married, does not work, she had her husband sign a doc. saying he has nothing to do with the house, and her mother gave her 1k to use as a down payment. The house is a shack and she paid $230k for it. How in the world can someone buy a house like this? If it were you or I, this would be a no-brainer. The mother and the husband are not listed anywhere on the docs.
Go figure. I say this was a corrupt deal.