Hi Connie, and I agree with Ken Cook, it has to do with the comparable sales in your neighborhood, and I am guessing distressed sales (foreclosures and short sales) also are playing a large part nationally in the large drop in home prices both in your area and nationwide. Both the comparable sales and distressed sales have really impacted home values. If it is any consolation, in the late 80's early 90's home prices shrunk by as much as 35%. I bought my home at that time, and I was VERY worried too. But, I still needed a house to live in, and my mortgage was about the same as rent....and by 1995 or so prices were back to where I purchased. Imagine my surprise with the price increases for homes from 1995-2006. The house tripled in value. With the marked now, I have lost 1/4 of my value again, but still my house is worth over twice what I paid. The old adage plays out, "what goes up, must come down" and hopefully soon, in this market, vice-versa!
Good luck, I hope these comments help! Jim Ryan, Home Savings of America, 703 591 5626 ext 419.