There were a multitude of contradictions in the post from the previous day. Let's review and elaborate:
-Current Case-Shiller index shows home prices moving back to pre-recession highs. But, towers of ilium claims that it might not be a bubble this time around because of high demand in urban areas. The post ends with the claim that next recession will cause a significant decline in home prices.
This is essentially a long bet on sustained high prices for houses even in the event of a recession. There will be corrections--which will have a disproportionate effect on certain properties. However, in the continued climate of high demand and restricted supply in metro regions and immediate suburbs, prices will stay high. There are even reports of high rents in the downtown Detroit area!
This is all starting to sound like "permanently high plateau" reasoning. Heh.