Many people are aware that the housing market isn't doing so well, but few realize that this was the first time that prices actually dropped since reliable records began in 1968. So, are the housing and stock market busts just a temporary correction or a long-term problem? Well, we have already seen a historic decline and many experts believe that there needs to be much more of a correction before supply fits with demand in a market with very tough consumer credit.

From The New York Times:
It was a notable year for the housing industry, and not in a good way. In 2007, the median price of an American single-family home fell for the first time in at least four decades, according to the National Association of Realtors, a trade group. The median price declined 1.8 percent to $217,800, the first annual decline since reliable records began in 1968. “It’s the first price decline in many, many years and possibly going back to the Great Depression,” said the group’s chief economist, Lawrence Yun.