"I've found this scenario to be wildly overblown and the dooms day predictions to be without merit"
Not true in So. Calif., not only are prices going down but people with ARMs on average homes are getting hit with increases of $450-500/ month in their payments. They can't sell because current market is $50k+ below their mortgages and forclosures are increasing.
Southern California does not a national trend make.
Further, with the "massive decline" in real estate sales the media has touted for July, North Carolina saw a 7% increase.