I dont know what point you are trying to make, but housing prices fluctuate all the time. I am talking about long term averages.
That's doubling in 11 years, thus rising 6.5% per year on average over the long term.
https://fred.stlouisfed.org/series/MSPUS
Over the same time period, the value of existing homes, as measured by the Case-Shiller U.S. National Home Price Index (which measures the price of repeat same home sales) more than doubled.
If you asking why I think it is completely unrealistic to expect a 50% decline on a short timeline, there are tons of reasons. You have to ask why housing prices doubled, and ask how easy or likely those underlying conditions are to reverse.
1) First, US GDP/capita went up by 60% in those 11 years.[1]
2) Similarly, US inflation in those 11 years was 40% [2]
3) US urban population increased by 25 million in those 11 years [3]
4) Construction costs/sqft are up about 90% in those 11 years [4]
5) More generally, Most Americans have 30 year fixed rate mortgages. This means they can and will avoid selling at a loss, so prices are sticky.
These are all factors without "quick fixes". Slow change can happen, but the fundamentals are sticky. If my house burnt down, it would cost $1M in materials and labor to replace.
https://fred.stlouisfed.org/series/A939RC0Q052SBEA
https://www.usinflationcalculator.com/
https://www.statista.com/statistics/985183/size-urban-rural-...
Massive monetary expansion via QE and low interest rates. Resolved by raising interest rates and taxes on wealth holders (and particularly those holding unused or underutilized real estate) to deflate the asset bubble.
Underutilized RE is a red herring.
As long as construction costs remain high, supply remains low, and there are enough buyers that afford the price, you wont see changes.
>Underutilized RE is a red herring.
So you've stated. Please prove it, at the very least showing how RE isn't underutilized (this is going to be difficult, because it is).
You would have to have major declines in the first 4 factors I mentioned. good luck unwinding worker salary, population, cost of materials to that degree.