I'm getting this from investors I listen to and people in the industry I know. 

You are correct about people sitting on their houses. As interest rates fall the market will heat up again because there is a limited supply and demand is being suppressed by the high cost. Granted, historically it isn't high(loans). But we have short memories. 

kepford

econ

Homeownership Is Not the American Dream

Undisciplined

The supply thing is interesting to me, because Boomers should be starting to put a lot of inventory on the market. I think they haven't wanted to, since the market cooled down, but eventually their houses will flood the market.