You are correct. I can only think short coverings cause the bounces right now. I believe that most people are complete morons (Like most realtors here in CAL that have told everyone that REal Estate can't go down). This is clearly going to be the greatest crash since 1929, The wife and I are livin gin our little (540k mountain cabin) house that we think will drop in half. We hope it does so we can by that beach home for a mil. Now the same houses have asking prices of 2.5. Hell, I am hoping maybe even less than a mil. This is going to get ugley and many homebuilders will struggle to survive.