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In the long term, housing will continue to follow the rules of supply and demand: as long as there are people looking for a bed to rest their heads there will be tenants and purchasers.
Another attraction is that a property may lose a quarter of it's value over a decade, but a stock can lose all overnight.
This "dip" is a natural following of the inflated prices (read: pyrimid-scheme) propped up by the allowance of falsified loans, risky ARMs structures, changing loan-transfering, and the consumers' "buy now, pay later" mentality of HELOCs/etc. All of this was created with the blessing of the Fed and Fannie Mae and seems very short sighted, but then again mabye that's the only way the economy works. We'll see.
O.k. Worst-case senario: 10 years into the future, jobs are all overseas, gas is $10/gal, unemployment at 15%, big time inflation.
Does the price of property continue to rise as housing follows the value of the dollar?
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Meanwhile other things are still happening.
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