The sub prime mess is starting to sort its self out but now we are into Alt-A and Jumbo Prime Implosions. All those interest only deals and ARM loans people thought they could refinance out of are going bust – check this out for more detail – http://mrmortgage.ml-implode.com/2008/12/15/fitch-moodys-sp-continue-to-trash-alt-a-jumbos/

Massive number of good homes will soon be available at dirt cheap prices – be patient!

I think the market is resetting its self back to the norm for the previous 50 years before 1999. On average home prices increased .5% above inflation (number based on 60 minutes just the other night you can find it on youtube) As far as an investment goes is not fantastic but it is reliable. So lets say you took the available estimated value of any home you are looking at from 1999 and added lets say 3.5% to 4% increase in value / year (inflation plus .5%) and do the math a home in the 550k (today) range could still fall 150K plus!!!! This is a market reset people..if you have been in a home for a long time this is just bringing things back to where they should have been. Just look at Daly City, average income is 65K! It just cant support 600K homes… we are looking at homes selling in the 300 – 400K range that were selling in the 700 to 800 range just a year ago. Sorry people, if your a buyer, bid 40% off and you may get out alive.