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There's certainly merit to their discussion, and there could easily be some pockets of pain (SoCal, S.F., Boston, D.C.) in the U.S., but I think most likely is a slow period with flat-to-slightly-increasing prices and a shift to a buyer's market in many areas.

Inventory is way up, in many locations. That's just what I expect to see, first. A prelude to quite a lot more than three pockets?

Eg, see the following to track some impressive inventory rises:

http://www.benengebreth.org/housingtracker/
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