While recent data for the United States is often regarded as showing signs of stabilization in the housing market, it is far from certain that downward trending is finally over, if one takes into account the possible effects of an ageing population that the Japanese experience suggests.
Even without any further fall, a 40 percent decline in U.S. real house prices is a deep adjustment. This has led to a significant divergence among industries in the pace of recovery. Some industries are recovering much quicker than others.