When this administration first announced the first-time home buyer's credit, it was announced that it's goal was to prevent home values from declining further. Back then I said nothing could prevent home values from finding their natural bottom. Well, after one month since the program ended, the facts are proving my point. Home prices fall 3% in early 2010 http://money.cnn.com/2010/05/25/real_estate/national_home_prices/index.htm "The housing market may be in better shape than this time last year; but, when you look at recent trends there are signs of some renewed weakening in home prices," says David M. Blitzer, chairman of S&P's index committee. Brad Hunter, who follows the housing market for Metrostudy, a consulting and data-providing company, is predicting further price erosion along the lines of 10% or so before the market fully bottoms out. "I've been dismayed by how weak demand has been across the country," he said." Personally, I'm not dismayed at all. Home values are determined by very basic causals. The market will only bear what those who live in a given area can afford and are willing to pay. Look for further erosion to occur.