I sure would like to see prices continue to come down, though I’m not sure I agree that we are only one year into the decline or that time alone is the right measurement. I do agree that other things are contributing (the economy, stock market, recession fears, et al).

http://www.signonsandiego.com/news/business/20080213-9999-1n13housing.html#name

There numbers are really very different. $472k and $429k are the y-o-y numbers. I can’t remember what the peak was, however it was much higher than $472k. Those numbers included all=condo’s, resale SFR and new construction. Even if you just go with resale SFR numbers, you’re still way off.

It took 6 years to build this bubble, it’s not going to bottom in 1 year. It’s a slow painful unwinding process that is just beginning. Look for 2008-2010 to be painful years as money is tight, inventory is high, and buyers are scared. Homes are not as liquid as stocks that can correct in weeks so don’t expect this market to play out quickly. I would expect at least 50% of the time it took to build the bubble, so maybe 2009 might be the middle of the decline. Just a thought. I am not an expert, but then again I waited and didn’t buy in 2006 when all the so called experts said there was nothing to worry about.