taffy davenport

Housing Prices: Bottom or Temporary Bear Break?

I'm curious what you savvy-sounding commenters think about recovery...how long will it take for housing values to reach 2005 rates? 30-year historical look suggests it may be 8-12 years until someone who purchased a house in 2005 can even hope to sell it for the same amount - not factoring in the change in value of a "dollar" from 2005 to whenever values recover. So, if this is true, and the cost of ownership for those who purchased in 2005 is so high annually - why would anyone who purchased in 2005 stay in the investment, unless they really really wanted to own the house outright in 30 years? As an investment, it sounds like a crappy one; bailing on the loan would seem the prudent financial advice. Thoughts?