Bursting the Housing Bubble: Foreclosures Rise 45%
Foreclosures increased 45% from January 2005 to January 2006. Note this simply marks a return to the long-term average.
Of course, if housing prices were to fall to their long-term average (based on the relationship to rents, to income, or any other such metric), we’d be looking at a 20-30% decline in prices.