Hey Jamie
Take a look at Alex Cooper's Auction Website and look at the foreclosures listed for the week of Jan 3rd thru 9th.
This is the most I have seen in years of looking at the list. I estimate around 900 foreclosures on this one website for just one week. This is a gee whiz number that is truly heartbreaking to anyone with a ounce of empathy for their fellow man.

....or a cause for celebration for those of us that have remained fiscally responsible...

I am 34 years old, single, have an associates degree, $43,000 in my 401k, and make just under $50,000 per year. House prices need to come down for me to buy.

Please forgive my iciness.

I can certainly sympathize with Darwin. With many people staying single longer, it's tough to buy a house by yourself. $250K for a rowhouse in a neighborhood where crime sucks, taxes are insane and schools are pathetic is ridiculous. I'm in the market now for a house and it's depressing. I might just buy in PA and commute like most of my co-workers.

A gee whiz number that explains Darwin's dilemma:

Real median hourly wages (adjusted for inflation) peaked in 1971. Household income is up since then, but that is only because of more women in the workforce (more dual earner households). In short, it takes two wage earners to maintain the same standard of living it used to take one wage earner to maintain.

Would someone care to explain why society would even want expensive housing? It is taken as a given that such an outcome is desirable and beneficial and the only debate is how to achieve such outcome. Why would anyone support policy that results in more of your income going to a necessity? That's the real question.

“....or a cause for celebration for those of us that have remained fiscally responsible…” These kinds of comments are upsetting to me. I have been financially responsible. I bought a home with 20% down and my income to housing costs are about 20%. I would say that I was responsible saving and buying a home I can afford. However, this housing decline is killing even the responsible homeowners, not just the people who bought houses without a clue as to what they could afford. Not every homeowner was irresponsible, but we are all suffering. I’m tired of hearing how people are pleased prices are crashing down because it is some sort of payback for those that bought a home. This housing market is causing serious problems for responsible homeowners.

M, while Darwin tends to be a little extreme, he does have some point. One can argue that a home buyer who bought with 20% down while paying 20% of income at 2006/07 prices *was* fiscally irresponsible -- because the price that person paid was clearly out-of-whack. I doubt that you would argue that paying $30K for a basic model Ford Fusion or Chevy Malibu is fiscally responsible -- even if you can afford the payments and love the car. That kind of car is simply not worth $30K! It was the same with house prices in 2006, but on a larger scale. So, those who dug in their heels and refused to overpay for a house, even if they could afford it, are bitter. Darwin sounds like he belongs to that camp. I am sort of there too. Even though I am no longer disgusted by the home prices and actually bought this fall, it will take years for me to forgive the general public the mass stupidity from the middle of the decade.

John, I agree with you 100%, home prices were WAY out of wack. I am beyond angry at some of the people that were able to buy homes, with ZERO down and 40% of income going towards a mortgage payment. There are a lot of people to blame out there. Unfortunately, Jack and Jane citizen are the ones that are really paying the price (Unless of course you are buying this year or next!)

My comment was to the doom and gloomers like Darwin who make those types of comments. I agree that houses were overpriced, but I wanted to eventually buy a home, was in position to and did. If I had my crystal ball when I purchased I would have held off and probably would have also played the lotto, but my crystal ball is broken.