There will be weak demand for housing for at least 3-5 years. And prices will need to drop by 50% (or wages increase by 100%)
True, if you look at the value of a home twenty years ago and calculated it's value based upon the time and value of money during the same period of time and you would be close to what current market value should be.
Nonsense! No one can possibly know when the supply/demand equation will come into balance. Homes in fact ARE selling albeit at a slower pace then they are being put on the market. People may just stop listing their homes in a market like this and that happening the over all supply shrinks ans prices begin to rise. There is not necessarily a lack of demand as much as people playing a wait and see game to see how low prices will go. As soon as the sheeple perceive prices are not heading lower they will en mass flood the market. One thing I will predict though. When buyers do jump back into the market this R.E. downturn will reverse as quickly as it came on us and prices for homes will again leap. There will a pent up demand needing to be satisfied. How long will that take? No one knows, all we all can know is it will happen.