News keeps getting worse for those who own homes in bubble regions like California and Florida. A recent study found that homes in those prices remain substantially overvalued compared to the incomes of those living in the area. This means that home prices - which have already been dropping through the end of last year - are set to continue dropping well into this year and perhaps over the next few years. It may be awhile before there is an opportunity to start buying...

From the Wall Street Journal:
If you own a home in a former bubble region like California or southern Florida, there's bad news… and really bad news. And they suggest that it is still way too early to go bargain hunting in these markets, although -- of course -- there is always the occasional deal around. The bad news is fresh market data published Monday night by real-estate Web site Zillow.com. They show prices, as expected, kept slumping through the end of last year. A new report from Zillow.com shows home values dropped nationwide by 3%. Chief Financial Officer Spencer Rascoff discusses which cities saw the largest declines. But the really bad news is that, even after a year of misery and falling prices, homes in many of these regions still aren't cheap. They remain wildly overvalued compared to average personal incomes.