[AdamSelene235]

In the past, people were willing to plop down a big chunk, in the expectation that housing prices would increase faster than inflation, and that their income would rise and make their mortgage payments a smaller part of their future income

I would phrase it differently. Housing has been the primary entry point of inflation into the economy due to actions of the GSE money pumps. These privileged enterprises now constitute a parallel financial system and unlike the banks have no multiplier restrictions (I believe Fannie is at 50 to 1 debt to equity right now). The inflation has already occured in the housing sector and is now spreading to the rest of the economy.

[razorback-bert]

West Texas RE is slow with slowly declining prices, haven't seen a McMansion for my price yet.