Credit crunch is neither inflationary or deflationary

Credit crunch is simply a TEMPORARY market supply and demand imbalance that would depress real estate for a while to allow time for general inflation to catch up, i.e., for salary and rental rate to catch up. Once, general commodity price, people's income and market rate increase pass a certain threshold, a new round of home price increase will have to start. Of course, credit will no longer be in crunch mode at that time. Actually, I don't think credit crunch will last longer than 2 years. It's only a temporary force, but a powerful force that may drag economy into a temporary recession.