The fact remains that, confronted with an apparently uncontrollable inflation, and with the theoretical ideal pegging to gold lost, the economy had to go back and look at money from the fundamental point of view of ensuring price stability. A Friedman-style approach, though revised and adjusted in light of the evolution of conceptual tools and of practical experience, came back into fashion.
As the broader economy continues to grow, though, I expect that we will see a turnaround in housing this year. However, there are many issues tied to the housing crisis that could impede recovery, and much depends on how these issues are addressed in the next several months. Employment is the other issue that seems difficult to understand and solve.