whereas the last graph showed a hook with a small gasp of a rebound, this chart has clearly rolled with no signs of coming back up.  ask yourself, what is your biggest personal asset?  if you're a home owner this one is easy.  therefore, if no one is taking out RE loans to buy more houses this means that house prices are going to continue down.  if we were threatening  hyperinflation, everyone and their mother would be rushing to the banks and borrowing to buy a house (a tangible asset whose loan would inflate away, ie, a free house).