Two very simple statistical data: new home starts at 2.28 million annual rate in January, new home sales at 1.23 million rate. The supply exceeds the demand by 85%, and this supply is coming as a wave just few months from now.
<insert your own conclusion here>
I see some direct political implications of coming real estate crash. Thanks Karl Rove strategy, Bush' electoral base consists of 10% of richest voters and 40% of the most stupid people as well. His hypocrisy is too insulting for those smart people who are not rich enough. The home market crash will hit stupid people in the first place, as those are relying too much on the market bubble prices for their day-to-day spending, which can substantially erode the GOP political base.