The market will recover once the dust clears. There is only so much real-estate and even less available in prime locations. Sure the earth is still creating more land which could eventually be used for real-estate but that process is VERY slow and much of it is under water. Also factor in the amount of land that is destroyed or transported into the earths mantle via the tectonic plates.

The problem and why we are where we are at today is because real-estate has always been a long term investment. Flipping houses is a recent phenomenon where the industry was perverted to allow quick inflated returns which could not possibly be sustained.

Everyone who lost was either greedy, foolish or just plain stupid.