I agree. Prices will drop more. Probably back down to her 10/2002 purchase price of $425,000. However, she will still insist it is worth more. Then, when she has to sell to put her kid through college in X years, she will realize there is no eqity. Meantime, I am living my life all these years to buy the house.
These speculators need to go. Let people who need to live in houses buy them.