The residential housing market may have some more downside before things even out, according to the National Association of Realtors. The organization increased their projected declines in home valuations for the first quarter again this month and projected further declines going into 2008. This is a drastic change from their projections just a few months ago that housig prices would be flat in 2008 and begin to rebound. As foreclosures continue to increase, more and more pressure is being placed on housing prices amid rising supply and decreasing demand.

From CNN Money:
In a fresh sign that the nation's housing crisis will worsen, home prices are likely to decline in 2008 for the second straight year, the National Association of Realtors said Thursday. The Realtors, in its monthly economic and sales outlook, is forecasting a 1.2% drop in prices of existing homes sold this year. Only a month ago, the association was forecasting that prices would be flat in 2008 and that the home market would rebound in the last half of the year.