You have not missed anything. No one thinks the price drops have stopped. I purposely exclude the NAR from that statement, as I think most everyone here has stated what the NAR's predictions are worth. Absolutely nothing.

It is my personal opinion that prices will continue to decline -- a lot. How much? An economist is as good as guessing as Average Joe Citizen. There are simply too many variables in play and no historical figures to rely on. We have steered the ship into uncharted waters.

I think the worst is yet to come. A lot of homeowners sustained lifestyles outside of their means by treating their homes as personal ATM's. As the ability to refinance as often as every six months has dried up, these same homeowners may be finding themselves with mortgages they cannot afford. Sure, they could "easily" afford the huge payments when their personal ATM (aka their house) was open for business, but how will they be able to going forward? The economy is currently stacked against the majority of us. Wages are flat and unemployment is swelling.

Many say the sub-prime mess is primarily over. As those funds from refinancing continue to dry up, I believe we are about to experience major turbulence with Alt-A and even A borrowers ability to repay their mortgages.

Only time will tell, right? Although we all wish this nightmare would end already, we are far from that happening!

The million dollar question from me is: with banks borrowing $20 to $30 BILLION per day from the fed, how come new credit is still unavailable to many qualified individual and corporate borrowers?

Great blog, Jamie! You've been on the www.sweethomeannapolis.com blog roll for awhile.