From what little I know about deflations, they tend to be self perpetuating. Just as inflationary bubbles feed ever rising prices, deflations feed sometimes rapidly falling prices. The difference is that real estate tends to be “sticky” on the way down as sellers only sell at lower prices when they absolutely have to. Still, why buy today if the price will be lower tomorrow? At some point buyers will step in, but what a painful ride!
As for a housing led recession?