How much further will prices fall across the country? Nobody knows, of course. But history says the bigger the bubble, the bigger the crash.
Those "professionals" in the market continue to be wrong-footed. Early last year I wrote that even though prices in Florida and California had collapsed, those markets were still overvalued. Naturally I was on the receiving end of lots of angry emails from real estate brokers who told me I was an idiot (or worse). Events since then have borne out my analysis.
(Incidentally: During the bubble, did a single broker ever complain to a media outlet that reporters were being "too optimistic" about house prices, or were "talking the market up" during a dangerous mania?)
House prices nationwide have now fallen about 30% from their 2006 peak. At these levels the contrarian, inevitably, starts to wonder if they have fallen far enough.