To get back to historical “norms” prices will need to drop to 2001 levels. I think the speed and depth of the drops we are already seeing in the IE would indicate that this might be worse than even the most bearish of us have imagined. I am already finding homes 50% off peak in some areas of the IE. 40% off peak (approx 2003 prices) is so easy to find that it’s not even news any more. I’ve already found nice homes selling for $80s/f some areas. It was only a few months ago that $100 s/f was making news. Now you can find hundreds of homes selling for around that. This snowball has just started rolling!
