Be careful with this. I've seen in some markets housing prices rose 2-11x their actual value. They were hoping to cash in on movers from other states and local economics. If we even assume prices were doubled to gouge people, that means prices reduce by half to return to actual market values. On this basis alone, home prices falling, even by large percentages, doesn't necessarily imply a weak or troubled market. What's actually an issue is the fed's rates. Which in turn is likely to drive down these idiots attempting to gouge the market.