Housing prices need to fall back to where they were prior to all of this subprime, easy money scam. What makes a townhouse (rowhome) in powdunk, usa worth 250,000? Who can afford that? Most certainly not the average working stiff even though these rowhomes are designed with them in mind. My wife and I both work and I know I couldn't afford a quarter million dollar mortgage. Housing prices hyper inflated the last 6 years just like oil did. Now that the easy money scam has been shown for what it was, a scam, housing costs will seek the level of their true value.
I watched a good show last night on CNBC about the subprime mortgage mess. I think it was called 'House of Cards'. Not even Allen Greenspan fully understood how these mortgages were packaged. His words were "it befuddled me."