Wow, David Lereah actually telling sellers they absolutely must lower the price of their houses even if it means taking a loss. The snowball has started rolling now and it's going to get bigger and bigger, faster and faster, and ultimately land with a big, fat, wet thud.
Here is NPR's August 22, 2006 Talk of the Nation "Where Is the Housing Market Headed?" (long, about 45 minutes). The first two guest speakers are pretty much useless IMO and it doesn't get even remotely interesting until the last third. One point not to miss is the fact that places like the Bay Area ("glamour" areas) are particularly susceptible to boom/bust cycles.
1. Lawrence Yun, senior economist with the National Association of Realtors
2. Elizabeth Razzi, author of The Fearless Home Buyer: Razzi's Rules for Staying in Control of the Deal; real estate journalist
3. Robert Shiller, author of Irrational Exuberance; professor of economics at Yale University
If you want to skip the long program above, here is just one caller's (a Bay Area real estate broker's) comments about the local RE market as well as Robert Shiller's response.