The reasons for optimism:
During the 2005-2007 correction:
Median household income grew by 5%
4 million jobs were created
2 million "legal" immigrations to the U.S.
U.S. population grew by 5 million people.
House prices fell, so affordability is up !
3 million family formations
"Boomers" retiring abated sales & or purchases.
Why an up-turn in late 2008 & early 2009 is likely & by 2010 solid...
Pent up demand from the correction will work off inventory.
Population growth by another 5-7 million people to a total of 315 million by 2010.
1 million plus "legal" immigrations per year.
Generation X = 30 million
Generation Y = 70 million
100 million growing in to home buying age !
Youngest 20 + / Oldest early 30's
It's estimated that only 5% of X & Y own homes now....