What on earth do you mean by "fair value"?
If there are more sellers than buyers, the prices are too high.
The true value (which is also the "fair value", if there is such a thing) of all housing units currently on the market is far, far below the sum of all the asking prices - or else they would all be sold.
That's not even economics - that's simple English.
If the government creates a law that kills a chunk of the demand, that's manipulation, not free market economics. So, "fair value" means what?
The true value (which is also the "fair value", if there is such a thing) of all housing units currently on the market is far, far below the sum of all the asking prices - or else they would all be sold.
Therefore the answer is to destroy empty housing stock and let the banks write them off. What you envision is not a return to "fair value"; what you envision is a runaway freight train plunging off a five-hundred foot bridge into a chasm of no return; because that is what will take place in our economy if values fall much further. You're talking generational disruption of the economy and circumstances that lead to the wrong kind of political instability.
That's not even economics - that's simple English.
If the real estate situation doesn't stabilize soon, the future will involve neither economics nor simple English.