How long it takes people to realize that economy is not about consumption, housing market? It is about producing things that we need ourselves, and if we are good at it, we export those products for things we are not good at producing. Asset inflation? It is just a byproduct of your ability to produce.
Housing market will never be "normal" until Freddie/Fannie etc are taken away and 30-year gov't backed mortgages are removed from the market place.