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Through January 2008, prices of existing single family homes posted record low annual declines.

“Unfortunately it does not look like early 2008 is marking any turnaround in the housing market, after the declining year recorded throughout 2007,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. “Home prices continue to fall, decelerate and reach record lows across the nation. No markets seem to be completely immune from the housing crisis, with 19 of the 20 metro areas reporting annual declines in January and the remaining – Charlotte North Carolina – eking out a benign 1.8% growth rate."

I believe that falling prices -- along with falling industry -- will ultimately be healthy, eventually returning real estate markets to more normalized sustainable levels somewhere off in the future.

Graphic courtesy of S&P/Case-Shiller Home Price Indices

Table courtesy of TFS Derivatives

Source:
Record Declines in Home Prices Continued in 2008
S&P/Case-Shiller Home Price Indices
March 25, 2008

Tradition Financial Services, Inc. / TFS Derivatives Corp.
March 25, 2008

Source: Record Declines in Home Prices Continue