I think pavy is talking about from an investment perspective and he is right. Of course it has ramifications for people who just bought, or need to access the equity or lever it for credit.

However, a buyer who intends to use the house as his primary residence for the foreseeable future shouldn't concern himself with the daily, monthly or even annual fluctuations in the housing market. At least insofar as it effects his particular investment.

That said, I will not be buying for some time, think these are falling some more...