We’re about to see a huge split in the country between those who have home equity and those who don’t. Previously, the huge spike in home values was regional but now it’s most everywhere from what I see. A huge percent of the population will be totally unable to afford a home. That will of course push prices down a bit of but they won’t be going back to pre bubble prices due to inflation, energy policy, corporate investment in SFH, etc.
Don’t forget apartment rents are just about equal to a mortgage payment. You will OWN NOTHING and be happy. Where have we heard that crap before?