Its clear that housing has hit bottom for most of the country. (Yes, in some markets there will be an additional 3-5% loss in value over the next 12 months.) All the ‘bubble appreciation’ has now evaporated and home values stand where they were back in 1999-2002..or in many areas the market has over corrected and its now possible to buy homes at 1998-1999 values. The only question now is how long will it take for the housing market to fully recover? A complete housing recovery will mean there is a 4 month supply of homes for sale. Before there is any sort of sustained recovery the 6,000,000 homes already foreclosed upon (or in some state of foreclosure) will have to be sold. Facts to remember, 30% of all homeowners (with a mortgage) are now underwater. If you were to factor in the owners that would be underwater if they had to sell (selling fees etc) the actual percent of underwater owners is actually 50%. Bottom line, 50% of ALL owners with a mortgage are underwater.