Phase 1: Buyers: Many buyers want very cheap homes. Sellers: Few sellers accept to sell at this low prices, as they still have jobs. Result: moderate sales volume with prices plunging relatively rapidly. Phase 2: Buyers: More buyers make "reasonable" offers. Sellers: More sellers accept to lower prices, demoralized by the continued plunge, and motivated by "fair" offers. Result: Prices plunge much more slowly, with high volume, some even call a bottom. Phase 3: Buyers: Very few buyers want to buy homes as the economy deteriorated (from other causes, not from the subprime meltdown), and many lost their jobs. Sellers: Now many sellers MUST sell, some even to survive after a job cut. Result: Prices plunging rapidly, altough with low sales volume.