Here is some historical info for you. In 1993 my wife and I bought a short-sale house from a couple who was getting a divorce and had to sell. They owed $220k on it and had bought it right at the peak in 1989. We bought it for $149K, the bank took a bath to the tune of $70k and of course the sellers lost all their deposit (which I think was around $25k).
I remember in ’89 no one thought you would be able to get a decent house again for less than $200k. Well guess what happened?
I agree it is very hard to wait but I really feel history will repeat to some extent. I personally am looking for about the same reduction this time, somewhere around a 30% and maybe more depending on area.
