Well, housing costs are in the process of deflating. :-(
Recently (the last hour and a half) I've been thinking about the value of housing. The Fed giveth and the Fed taketh away. Your house was worth a small king's ransom because of free-flowing money. It hurts us right now, but it is necessary and inevitable for housing prices to fall. At some point first time homeowners have to be able to LEGITIMATELY afford a house or the price has to collapse. Or, your house may be worth a million dollars again. It just won't be worth as much. Back to Christmas decor.
I say sink the Fed. Coastal property has less swing in value then the property inland. By alot. I was watching cable tv and the comment was if Property sinks by 10% next year we are in real dutch, bonds will collapes and we will go into full blown depression. I know you hate to hear this but if the Tea Party gets its hands around the deficit which I strongly believe they will, Bet all of your coins on Black (the Stock market). One thing I know is this... For every action there is an equal and opposite reaction. next year and the years to come are the time to strike while the Iron is hot. We have been down for some four years or so that is a long time. It is time for a new cycle.