Readers suggested a topic on weakness in different price ranges. "I think the lower end houses will remain more stable in the upcoming downturn. That’s what I have observed in prior downturns, (except if its in a area were major job loses take place ). The upper middle takes a major bath in downturns in the past that I have witnessed, that would now be the $700k to $1.5 mil range. Who knows what’s going to happen with this market this time. It stands to reason that all price ranges are going to be going down."

Another added. "I am out of the market now (obviously), but for at least 5 years I have been trying to tell people how housing downturns work. The stuff at the bottom is always more stable, because there are more people who can afford those homes."

"Its the stuff that is now priced above $300,000 that is going to get ugly. Especially as you mentioned the stuff in the $750K range. These people can't really afford their homes (for the most part), as they would need to make upwards of $200,000 under traditional lending standards."

"Oftentimes people say to me 'but we can afford the payments.' What these people fail to realize is that their home is only worth what a similar income-level family can pay. So if rates go up (or the ARM stuff goes away) prospective buyers have to qualify at the current rates/guidelines. If they cant, then by definition the home is worth less money."

"Similar principle when you look at FB’s who bought homes above $500,000 to rent out. How many people can actually afford to pay over $2,000 in rent. Here’s a clue for these FB’s - not many. So when they are unable to secure tenants for their homes, then 'walla' the lightbulb turns on in their head: 'I’m *ucked aren’t I?"

And another. "Beg to differ…"

a) Job losses hit the low end first and hardest.

b) Low end households tend to have little or no savings.

c) Low end households have little or no assets to liquidate.

"Watch 'Cinderella Man' for a good take on what’s coming."

A reader from Australia. "The Australian experience over the last couple of years is quite complex and doesn’t fully support either (of) you (first two posters). I will post at greater length if this is used as a topic."