Times columnist David Lenhardt looks the real estate bubble straight in the eye and shrugs. While some people, particularly those with a pressing need to downsize or move to a cheaper market, would feel pain if prices fell 25 or 30 percent, existing homeowners should be fine and may even find a pull-back to be an opportunity to trade up:

Instead of panicking, most homeowners should be taking a deep breath. The real estate slump of 2006 offers a fresh chance to puncture the No. 1 myth about the nation’s No. 1 topic of conversation: the idea that we should all be rooting for high house prices. The myth is good for real estate agents, but it creates needless anxiety for everyone else. It’s time that most of us learned to stop worrying and love the bursting bubble.

Don’t Fear the Bubble That Bursts [NY Times]