I said for a couple years before it happened , that houses would reach a point where they just aren't worth what people are asking for them. Just like the dot com boom/bust. People were just buying to sell it for a higher price. A lot of the dot com companies never made a dime of profit, but people kept buying and selling just to buy and sell more. It's like musical chairs with your money. Pretty soon the music stops, and someone is left without a chair to sit in. Real estate will come back, never in the history of mankind has real estate gone down and stayed down. Look at a long time graph of real estate, it sometimes goes down, but draw a straight line through the graph, and it's always pointing up. I sold a house, and bought another house at just the right time.