The Price Discovery Process Leads to Housing Busts

Headlima: Major housing busts take four to six years on average from peak to trough. He says it takes a long time to find a new price equilibrium when you've had an elevated prices. While that's occurring, volumes are going to stay low, he says. Headlima: You got to get people feeling there's going to be appreciation again in the home before the housing market can become regular again.