excepted from http://crooksandliars.com/susie-madrak/home-prices-falling
I think home prices may fall by even more than 30%. We're hitting a period of deflation, which will drive wages (and employment) even lower and the value of houses may drop even more:
"We will never see these prices again in our lifetime, when you adjust for inflation," says Peter Schiff, president of investment firm Euro Pacific Capital of Darien, Conn. "These were lifetime peaks."
So far, home values nationally have tumbled an average of 19% from their peak. As bad as that is, prices would need to fall as least 17% more to reach their traditional relationship to household income, according to a USA TODAY analysis of home prices since 1950. In that scenario, a $300,000 house in 2006 could be worth about $200,000 when real estate prices hit bottom.
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