Fortunately, those of us who live in Alabama have been spared the vicious and large declines in home prices. While there is still a ton of inventory and some slippage in values here, it pales in comparison to the mess in California, Nevada, Arizona and Florida. Yet we feel effects through the greater economy and the general mood of consumers.
How much longer do we have until prices nationally hit bottom? One very detailed report prepared by Wachovia Economics Group tries to come up with an answer. The Cliff Note’s answer is they project values will hit bottom toward the end or 2009 or early 2010 and home values will have lost 25% from their peaks in 2006.