This time around, the Fed may not be able to “save” the bubble from a complete round-trip deflation, which history suggests might decline by 50%. Yes, yes, we’re millions of housing units short of demand, etc., but speculation has driven hoarding to levels that are not easy to measure. Once the credit bubble pops, all assets driven higher by speculative credit will pop, including housing.

Yes, a 50% decline is “impossible.” But let’s check back around 2032 to see what’s possible and impossible then. As I often note, if we own a house free and clear and have no interest in using it as a speculative gamble or collateral for extracting phantom wealth via a home equity line of credit (HELOC), then the market value is of no concern. Whether the house is worth $10,000 or $10 million doesn’t matter; what matters is its utility value as shelter we own and control.

https://www.zerohedge.com/personal-finance/who-wins-and-who-loses-when-housing-bubble-pops