This should have happened a long time ago. Home prices were artifically pumped up by government policies like the Community Reinvestment Act, the Clinton Justice Department's strong-arming of banks to hand out loans, low fed rates, and the existence of Fanny Mae to buy up the shaky mortgage securities. The entire price structure for houses needs to be re-aligned, seeing prices drop to move closely reflect their value (too many were built, thanks to those policies mentioned earlier). Only THEn will they be priced at a level that might see investors buy them and find some use for them.

http://finance.yahoo.com/news/Mortgage-default-warnings-apf-157937671.ht...

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