Every fact you mentioned points to additional declines in the high end. As the high end comes down, it only makes the lower end less attractive, and pushes it down further.

Additionally, you didn’t address the four large elephants in the room that are going to be sitting on real estate prices for the next several YEARS (not quarters – years.)
1.) Unemployment forecast to remain high through 2011 and beyond
2.) Prime mortgages have just not begun to default – they had a 18 month longer window than subprime. Unfortunately that fuse has gotten close to the bomb, and there are many more $ in prime mortgages
3.) Consumers have to deleverage relative to past borrowing (aka – “new normal) – with a lower ratio of debt / equity come smaller mortages = lower prices.
4.) Inflation will drive up interests rates – driving down prices (not a reason to buy while rates are low… wait till prices come down)

Seems patently irresponsible to make a throwaway statement like “everyone who buys now will be rewarded.” They’ll be rewarded with immediate, sustained losses.