Will real estate values continue to drop through 2008?

Yes. Real estate values ran up at such a fast pace from 2003-2005 due to the Fed lowering rates and over-zealous home speculation. Home values have corrected about 10% since then, but many believe another 20% correction gets us back to “normal”.

Of course, you’ll never hear that “doom and gloom” outlook from the National Association of Realtor’s economist or many others, so be careful where you get your housing predictions.

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