joeyr46, I tend to deal with facts in my area and the way things are here. I have no interest of over supplied American or UK property. You talk about too many things like, "too much credit", "too illiquid", "deflation", wholesalers and so on but none of this has any effect of property being sold right now and in my area.
The buyers are still about and credit is flowing to all those who are worthy of getting it. I have no debt what soever and we could get 300K credit easy if we wanted it. Lets face it, these days an average working couple can earn a 100K combined income quite easily and they can get credit easily as long as the deposit is there.
You talk about liquidity, that's just not right. Properties that are priced correctly still sell within 2 and 4 weeks time. However I might add that there are some silly owners out there. I went and saw a nice 2 br unit 4 weeks ago, it was on the market at 449K. Now the sold sticker is on the sign and another sign is up along side it for another unit. The new one is on the market for 550K, guess what? no takers and it is still available. Why would I pay 550K when the neighbour just sold for 449K? Needless to say this property probably won't sell. Other than gross mispricing pretty much everything under 500K is still being sold.