Why Home Prices will Fall for Years
Because people refuse to lower the prices, even when it's obvious they should.
Real estate, though, is different. For both economic and psychological reasons, there is no asset more conducive to hopeful overvaluation.
That means real estate slumps tend to grind on for years, until sellers submit to reality and reduce their prices.
P.S. Readers should ignore the NY Times bone-headed error in reporting that home sales had "risen recently." That's based on a false reading of the NAR numbers, as well as, I would bet $100, some ridiculous editor's concerns about "balance" in the story. Always have to get the other side into the story -- no need to demand that the counterpoint be factual, of course.