"Not only is it extremely unlikely that we have seen the bottom in home prices until the unsold housing inventory drifts comfortably below 8 months’ supply, but the potential downside from here could easily be another 15% since that sort of decline would bring the Case-Shiller index back to its pre-bubble range in ‘real’ inflation-adjusted terms. (Home prices may well be all the way back to April 2003 levels but the mania in which home prices began to outstrip inflation by 10% or more started in 2000 so there is still, in my estimation, three years worth of bubble activity that has to come out of the system.) Green shoot advocates would undoubtedly point to the fact that this would suggest that we are now two-thirds through this real estate deflation cycle but not likely point out that the last third leg down will drain a further $3 trillion out of household net worth, with a commensurate $200 billion (or 2.0%) hit to consumer spending via the impact on the personal savings rate. "
If you want to sell your house; price it right, stop dreaming about top dollar, you missed it. It's value is less than last year and is probably closer to a 2004 price, thats what we see in our neighborhood.
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