Nobel Prize Prof. Robert J. Shiller on Market Efficiency and the Role of Finance in Society 

pirucreek find a smaller house in the neighbourhood.

+pirucreek 30 year fixed mortgage versus a ARM mortgage.

sell houses (preferably build yourself) and buy them back when it all tumbles down?

You buy insurance protecting down pricing of your existing house. And I believe that's what he trying to said as well. Of ppl should worry about hedging/buying insurance for the home. But some how ppl doesnt care of doing so.

Own a house

Hahahaha

for the most part, but there's a limit on how scientific investing could be