And suddenly, that $500,000, 5000 sq/ft home on a 1/2 acre lot seems awfully big for 2 people.
Where is this house? Certainly not in California, where $500K buys you a 1000 sq. ft. house on 1/10 of an acre. Prices have fallen about $100K in the last 6 months, but they need to fall another 50% before they return to pre-2004 levels. And I believe they will, just like the NASDAQ bubble in 1999, which deflated back to its previous level between 2000-2002.