I like Illinois, they're pretty tough on deadbeats, you can walk but you can't hide, but that probably decreases the number of buyers. I think the market wll go down until 2012. That's my opinion, everyone has one. The realtors' opinions may differ. For some reason, the realtors don't like low house prices. It may have to do with the commission payment structure they use.

Any of the naysayers care to comment on this recent news article?
http://biz.yahoo.com/rb/080812/usa_housing_prices.html

I deal quite a bit with foreclosures, and I believe we are at the bottom line pricing level right now! I have now had several properties that not only had multiple offers but also went over list price. That was a very good sign for me. As always, priced right and it will sell! We then need to get thru the election, and as soon as next year hits we will be at the start of a normal increase in value. No not the 8-10 percent we were seeing, but a normal 3-5% to start. By spring 2009 the real estate market will be back in the swing of things. So yes, buy now or you will be paying more. Keep in mind if you are buying low, you are selling low and vice versa. So the ones to gain here are the first time homebuyers and investors.

This last Sunday the Chicago Tribune and the MSNBC Mad Money star-Kramer-said buyers should buy within the next 6 months and get the best deals. To me this means we are near the bottom and will go in the opposite direction soon. Lately my sales have quadrupled and I have about 5 homes under contract.

Interesting question! I believe we will be in a downslide for another year at minimum. Things should start looking up by early 2010. Most of my Lake County properties have gone down approximately 12% since their high (in other words, house prices are about the same as they were in 2003/2004). Looks like houses in good shape and priced correctly take at least 6-8 months to sell. I you want to buy, I would wait a bit still. Another factor that will help houses increase will be the demise of the builder. Many builders have gone under, with larger builders downsizing considerably - purely supply and demand. Too much speculation and greed got us where we are today.

probably when demand for homes out paces the available supply

I believe foreclosure's will continue at least into 2010 since they did not stop giving Liars Loans until sometime in 2007 if you also consider the fact that many homeowners with traditional mortgages are starting to have problems in record numbers and many more will be falling into default with the rising gas, heating costs, soaring food prices, etc. you can expect the prices to continue to fall I would guess another 10-15% depending upon the area. In other words we haven't seen the bottom yet and it typically takes years after the bottom for a recovery. This has happened before in the 80's we could not have sold our home for what we paid for it luckily we learned a lesson held onto it until shortly before the collapse began sold it and rented.

I think you are asking if the market has found its bottom or if prices will continue to slide down. As more reo's (banked owned properties) sell they will make average prices trend down without a doubt. The one wrinkle is that these homes represent a very unique part of the market and typically need much work done. As a result many buyers either will not or cannot purchase homes in disrepair. It is almost like we should have 3 sets of average prices, 1) Average price for REO's 2) Average price for New Construction 3) Average price for resale homes.
In most of the markets I am in, resale home prices have steady or slightly sluggish so far this year while builders are struggling a bit more. And of cource REO's are low and will continue to remain low for the foreseeable future.