1. Much of the U.S. housing market is still inflated to the extent that their remark is true, but that is partly due to a 'stillness before the storm'. Many home"owners" are holding their breath, finding ways to 'get by', in hopes of a return to the 'normal' market that they have come to know and love. Ain't going to happen. The market has already contracted severely, and prices will follow.
   
2. Abandonment will be rare. Either financial institutions, including Sovereign Wealth Funds, will step in and buy housing for the rental market - which will grow substantially - or governments will intervene.

As to your third point, your implication is exactly correct. More 'ballast' for a sinking ship.

paul spencer