You're right. Housing costs can never really drop steeply because you depend on sellers. Most don't need to sell so they will just sit it out and wait for bette

You're right. Housing costs can never really drop steeply because you depend on sellers. Most don't need to sell so they will just sit it out and wait for better times. The second effect is as you say, builders simply stop building in unfavorable conditions. There will not ever be adequate supply.