Eventually, home prices will be relatively stable. Somewhere just under what it costs to put up a new one. This will mean that perceptions about puffed values will no longer drive people's decisions. Those with bloated mortgages will simply be "upside-down". They'll accept it as a fact and act accordingly. Some will stiff the bank, and others will find a way to get their positions right. Buyers will buy the homes offered at acceptable prices and walk past the rest. This is just the way it will be.
Lenders will lend money based on the new value reality and they'll be happy to do a 30-year fixed mortgage for folks with some kind of a down payment. There will be much less creativity when it comes to financing.
Some people will rent from those with enough money to control rental properties. There will be some balance between what you get and what you pay for. Of course this will happen.
Oh - and one more thing... Eventually, nuclear power will deliver energy in abundance and demand for fossil fuels will be only for those applications in which it is necessary.
Now then, isn't all that nice to know?
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