The housing market needs to "rebound" to where it was in 2004-06 just about as much as a recovering PCP addict needs a good, strong hit.
We are just barely getting back to where home prices are in line with incomes. Need to stay there.
I wasn’t saying that price levels need to return to a particular level, but the market won’t clear and return to truly market-based pricing until the defaulted loans are cleared. The uncertainty created for the market by the homes held in limbo prevents true market pricing.