"If you own a home in a former bubble region like California or southern Florida, there's bad news… and really bad news. But the really bad news is that, even after a year of misery and falling prices, homes in many of these regions still aren't cheap. They remain wildly overvalued compared to average personal incomes.
Try around a third in Florida and Arizona -- and closer to 40% in California.
Median prices in California peaked in 2006 at 13.3 times per capita incomes. Hard to believe, but true. They may be down now to about 11.1 times.
But that's still way above the ground. Throughout most of the 80s and 90s they ranged between six and seven times incomes.
Just to get down to seven times incomes, prices would have to fall 37% tomorrow."
Here's a nice video of treasury secretary Paulson saying the worst is not over, it's just beggining. As Robin would say "Zoinkers".