Home Prices Could Drop 50% As The Great Recession Resumes « Intelligent Investing - Forbes.com

JMO:

Although I disagree that home prices are poised to drop ANOTHER 50% from where they are today, I do believe that any double-digit drop could be catastrophic. Not only would another precipitous drop represent "the last straw" for many homeowners that have tried to "do the right thing" by maintaining their payments, it would also represent a loss in equity to those buyers that have come into the market in the last year or so. This combination, in my opinion, could create another wave of foreclosures, strategic walk-aways, short sales, etc that would dwarf what we've seen thus far. The attached article appears to infer that 1999-2000 levels represent the "support" values that home prices are seeking. I would disagree. At least in the Arizona and California markets, with which I am more familiar, the explosive rise in home values occurred between 2004-2007, which means the realistic support would be based on home values between 2003 & 2004.

Home Prices Could Drop 50% As The Great Recession Resumes « Intelligent Investing - Forbes.com