In real dollar terms the loss from peak is $42,000. Not a small amount by any stretch. In addition, if you were to sell and bought at the $518,000 peak, you would also be out the additional 6 percent especially in the current buyers market.
Overall the loss would be over $70,000. Forget about money saving renting over buying for the two years and trying to find a buyer at $476,000.
Many have seen the Moody's article that claimed we would see a bottom at -8 percent. Uh, we're going to hit that in November or December not 2008.
Sorry but I have a feeling that the drop will be a lot larger than many have imagined.