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Multiple Buyers would stand in line and bid for rights to make offers for MORE than the asking price because of GREED. The emotion that shows itself even after the largest reversal in history. Humans used no intellectual justification other than the house down the street sold for a certain amount. It was like trolling for a parking space around christmas time. Beware pedestrians. The greed continues due to the lack of education, and gubmint programs and sellers who stand to benefit from that negative emotion. We need to educate the public as to WHY Real Property prices rose out of control in the first place. #1. Women were accepted as credit worthy in the home buying process in 1973. (No one wants to discuss that) #2. The computer turned regular cash flow to a tidal wave.

The wave has receded, the cash is gone. The greed remains.

Seriously? We let women buy houses. That's your argument? Damn them! We should never have let them become educated.

Ok, lets pretend real estate does bottom out at insanely low 1975 prices... and if they bottom low enough... Every renter on this website will buy a house... And have thousands and thousands of spare cash laying around each month being saved since their monthly nut will be so cheap.

Won't this extra cash get spent into the economy and drive consumer spending and housing into a whole new bubble? So we'll be back to 2007 prices soon after all the renters become owners and owners become renters.

LA owner: an asset bubble usually results from credit or leverage being used to buy an asset. This asset then is easy to buy, and it goes up because everyone sees the other guy buying it, etc.
In 1929, stocks had been bought on 100% "margin"=credit. You own 10 shares, you can buy another 10 shares, owning a total of 20 shares but you paid for just 10. Too much credit or leverage to safely own this asset.
The asset of stocks popped in 1929. The ripple effects of any asset popping are like the tsnuami after the earthquake.
Recently, people could buy an asset with a lot more leverage. People who had no real assets or sufficient income could buy houses. This cause that asset to become a bubble which also popped.
The housing bubble can't be recreated unless and until 1. people forget it was a bad thing to buy 2. banks forget it was almost fatal to them 3. regulators forget 4. customers of those mortgage backed securities forget.
So, there will not be another bubble for houses based on credit, 4 groups of people have to develop amnesia.

AuntieMame says

Seriously? We let women buy houses. That's your argument? Damn them! We should never have let them become educated.

No One talks about it cause of perceived chauvanistic attitudes. But ,,, If the truth hurts, ignore it !

Just a simple fact. Prior to 1973 only one spouse's income was considered on the mortgage application, because the other often got pregnant and lost their income while raising the children. Back when "MEN BROUGHT HOME THE BACON" Women were earning about 73% of what men were earning and OOPs what a coincidence. Housing prices about doubled in the next six years. That wetted EVERYONES appetite. Nobody knew why prices doubled, but they wanted to be ready when prices jumped again. Five years later the computer was becoming an appliance in every home and a mandatory tool in every business, AT TWO THOUSAND DOLLARS A WHACK and traded up every two years. Do some simple math, it's pretty impressive.
Don't shoot the messenger. Some people want to know why real property prices became detached from reality.
I would have given her credit.

TMAC--

You need to get back on the meds.