Here is the projected bottom, but could overshoot to the downside. We have a long ways to go to reach a fair market for both buyers and sellers. Unfortunately since the government is in the way, it is stretching out the process.
It SHOULD have looked like this and been done in one or two years.
1.Peak of bubble reached in 2006, asset values start to collapse, market is flooded with property and people trying to get out.
2.Massive wave of foreclosures and bankruptcies, including many big banks going out of business due to over-leveraging and mortgage backed securities(MBS) and collateralized debt obligations(CDO's) going to or near zero.
3.Big banks are nationalized, bad debt is wiped from the books, good assets sold to smaller stronger banks, CEO's of large banks FIRED.
4.Big banks are now small banks, put back out onto the market with clean balance sheets.
5.New regulations put into place to prevent old problems from reoccurring.
6.Market is now reset, and prices would be back to pre-bubble levels, and once again supply and demand has been re-balanced.
We probably would be completely back to normal by now, but that would cause too much pain. So we are now 6 years into this mess almost, and are still in step 2. This is how government intervention screws things up. What is listed above is true capitalism, what we have now is not. I think we have at least another 6 years of this mess, unless we have a collapse. Japan did what we are doing now, and their real estate prices have been falling for 20 years. So I will let you guess.
