I agree. Many keeping track of actual prices in specific known markets will question these minuscule indices movements. Maybe it's massaged so as to not upset the multi trillion dollar apple cart.
We have already seen the consumer pull back spending and placing retail on the verge of recession. What would happen if the thing really gained some momentum. Even less spending, recession spreads to many other parts of the economy, and we get plenty of fair value houses for those first home buyers who have been waiting for some sanity in the market.
That study posted the other day about house price retracements and resulting recessions was quite enlightening. But it's pretty simple really, your main asset, which in many cases is mainly owned by the bank goes down, and you just stop spending on all but necessities. Economy grinds down, more jobs are lost and mortgagee sales, prices fall further and the cycle continues until possibly properties will be selling well below fair value.
The government will not have the billions to stop a tsunami with a trillion dollars of borrowed money behind it. Then again they just might be able to sell enough land and mining rights and bonds to china who will have the cash. That will mean that the housing bubble will be responsible for the country being sold out to foreigners. that would be the worst outcome.
