The Answer to a Housing Recovery: Lower Pricesthe primary problem in the US housing market remains one of supply and demand. As the jobs market continues to weaken, deflation takes hold of the US economy and the shadow inventory floods the market the math here remains simple enough for an Econ 101 student to understand. In order for the housing market to build a firm foundation that does not require government aid we will need to see a reduction in prices. ...Based on Merrill [Lynch's] estimates the housing market is unlikely to normalize before 2015. The supply/demand imbalance is simply staggering at the current levels and is likely to deteriorate if the economy weakens furtherAugust 31 2010 - US22YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.