Regarding Albany, I recognize the trend you are referring to in the â€œMedian Sales Priceâ€ graph.
Anecdotally, I know of three properties on part of my street alone (~0.6 mile stretch) that have been vacant and not for sale for more than a year. Another property that went on sale a few months ago was recently pulledâ€”it remains vacant.
As well, I agree with your projection about the direction of real housing prices. However, due to inflation, nominal prices could decline less or remain flat for several years.
By the way, did you notice the phase shift in â€œNumber of Salesâ€ after the middle of 2009? What does this imply about liquidity in the Albany market?