Moody’s Economy.com published an interesting chart of projected declines in median existing home prices. It basically lists the peak for home prices in a certain market, and its projected bottom.
While some markets are due to get slaughtered, some aren’t as bad as one would imagine. Las Vegas for example is due to drop 12.9% from its peak in April 2005, while Los Angeles is only due to drop 4.8% from its peak in February 2006.
Overall we’re seeing a correction, but nothing too drastic if you consider the explosion in housing prices over the last five years. A pullback like this isn’t the end of the world, and certainly not a burst as some like to describe it. Of course this is just a chart, so use at your own risk.