There is one piece of this puzzle that is not addressed in this article: the property assessment.
I am going through a refinance right now. The assessor is being very strict with the assessment. She is essentially controlling the market value of the home. I read through the assessment and see market analysis wording. The terms "soft market" were used repeatedly. If the assessors, licensed by the State I live in, are being "watched" by the State (and Fed?) regulators to prevent another "bubble", what can the market do, but languish?