You shouldn't look to real estate to evaluate demand. The housing bubble is the primary cause of the crisis. By most estimates prices have to dip another 10% in

You shouldn't look to real estate to evaluate demand. The housing bubble is the primary cause of the crisis. By most estimates prices have to dip another 10% in order for the market to return to its historical trend (which is to grow at the rate of inflation). There is no demand now because everyone knows housing is overpriced. That's a good thing.