Any "solution" should recognize the problem and then move towards the solution, which implicitly involves some sort of government intervention to support existing -- or in reality, past -- real estate prices. The objective, from this perspective, is to preserve the asset value of current homeowners.
To get to a true "fair value" one must remove all government price supports, whether through favorable regulations, imposed moratoria on foreclosures, special subsidies for the FHA to allow it to subsidize or support homeowner mortgages, or temporary tax breaks. All of these supports involve encouraging purchasers to spend someone else's money and foster artificial price inflation on the theory that buyers will not mind knowingly overpaying when they are spending someone else's money. All such supports involve a direct or hidden cost, benefitting prior purchasers, upon everyone else. These supports act in essence as wealth transfers from the taxpayers -- too often, those who cannot yet afford a house, and disproportionately young and poor -- to the homeowner class which is, more often than not, better off than its non-homeowning benefactors.
Eric Dixon is a New York investigative lawyer with a background in securities and corporate law, election law, corporate governance and government and corporate investigations.