The government recently reported that unemployment has hit another high from this foreclosure driven recession. The amount has topped out above 1 out of 5 people bringing the national average to 10.2 percent unemployment rate. It is going to take a lot to turn this problem around and this number does not include those that have settled for a part time jobs or just stopped looking all together making up the discouraged workers side of the market which when included with the unemployment figures tops out at a 17.5%.
At this time home values can only see a decline and we see huge amounts of short sales in the future. As fewer homeowners can enter the market and many come flooding out prices will inevitable go down even further. It is very possible that the shadow inventory of REO waiting to be released will only further depress the market. Banks are not in business to hold homes and this is bound to happen.