Home Prices Plummet

When will the economy hit rock bottom? In the fourth quarter last year, home prices dropped 12 percent from a year earlier--a record loss in value. A perfect storm of foreclosures and the recession is to blame: boarded-up empty house reduces the value of neighboring home and the recession is leaving few buyers. Ironically, mortgages are near an all-time low but no one can take advantage of it. In almost 9 out 10 cities, home prices have dropped. There have been more than 250,000 home foreclosures in the U.S every month for 10 months straight.