“In the housing markets, there are really three Americas. The declining inner cities of the Rust Belt constitute one America. These places have limited demand and their housing supply is fixed by the number of homes built during an earlier, and more successful, era. These places have had little recent price volatility and don’t represent the core of today’s troubles”.

A helpful read, Edward L. Glaeser an economist at Harvard University takes a look at how low housing prices will go.