a place to live (aka a home) isn't a discretionary expenditure that people can just cut out of their lives like the cable bill, the car, vacations, etc when times get tough. Nobody is saying things are great, but people still need a place to live. Apart from some over stretched investors dumping investments on the market, I don't see a huge rush of home owners dumping their homes and moving into cardboard boxes. Buyers might drop off a cliff and sellers will be stuck, but I don't see that translating into huge discounts in terms of much lower prices. Sure prices can come down, but people expecting %25-%30, keep hoping.
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