A historic decline in home values comes down to this: Even if you never signed
papers on a risky loan during the real estate frenzy, you may now be paying a
price. In recent decades, it has been uncommon for US home prices to fall
much, even during recessions. One government measure has never shown a
year-over-year decline in its three-decade history.
This is bad news for those who own homes right now, because they might lose value. It is good news for those who are looking for a house though. It is an healthy thing for the economy, the housing bubble was becoming a risky, it was either going to deflate slowly or bust.