Let's do the housing bubble math

2005: Homedebtor A decides to stand in line all night to score a Toll Brothers house.

$800,000 purchase price
+$100,000 upgrades
+$100,000 lot premium
____________
$1,000,000 total real cost

2006: Homedebtor B takes the bait and picks up a similar Toll Brothers shack during the firesale.

$720,000 purchase price (using yesterday's 10% price drop number)
-$100,000 free builder upgrades
+$50,000 new lower lot premium
-$50,000 cash back at closing
____________
$620,000 total real cost

Now, seller A gets divorced (his wife left him for the realtor Suzanne), has to sell. It finally sells for just a bit less than the builder price (people will always choose a new home where they get to colorize vs. a used home) - say $600,000. He pays 8% closing costs or $50,000, total proceeds after close of $550,000

You got it - $1,000,000 - $550,000 = $450,000 loss in one year. Or $1233 A DAY.

That's doin' the math, housing bubble style.