It’ll get worse. Sooner or later, the unemployment benefit extensions will end up reaching their cutoff dates and unemployment benefits will start dissapearing again. The benefits are what is helping most people hold on right now. When those benefits go away, we’ll see a major influx of more forclosures and ofcourse, prices will drop further. Add to that there will be less purchasing in stores and that will cause even more layoffs and more forclosures. The market will go barren. You’ll be able to buy many houses for cheap, so if you’re a buyer with money and a stable job (and hopefully a good credit score), you’re in luck. But if you’re a seller, you’ll be up the creek. Trying to get full price for you’re home will be next to impossible. You could short sell your house but you’ll regret it on your credit report and in your checking account. It’s something like bankruptcy from what I’ve heard, stays on your credit report for around 7 years and lowers your credit score. And then ofcourse, there’s forclosure with is the worst possible choice of all.

I’m guessing it’s going to be at least 5-10 years before the market stabilizes again, 20 before we see the type of growth we’ve become accustomed to seeing. But before that happens, within the next 2 years, things are going to get much worse.