Still, most people here are still employed and they aren't buying and selling houses at the previous rate. That's because banks are not making loans ~ unless you have some substantial equity to play with.
Funniest thing, folks in the DC area lost massive amounts of equity just like everyone else.
They did. And they lost it the moment they signed on the property, because the prices now (and what they are dropping to) represent the true value of the property.
It takes a Keynesian view of economics to mess up this bad with so much money.