patrick.net

Oh sorry ... didn't see where you said "make his service accurate" - the whole point of his system is that it IS accurate from the buyers perspective - if you'll be financially better off by renting than you will by buying, the 'accurate' prices given by the agents and their appraisers (using recent sales ... circular logic in my mind) are TOO HIGH. Naturally, from the seller's perspective the 'right' price is as much as can be obtained. BTW I do computer repair work for realtors and loan brokers, who are often infected by viruses (and potentially liable if private financial information from their clients, stored on these infected PCs, is leaked to identify thieves) - I charge 400$ per hour, which by my estimate is an excellent price for what you get (price is based upon going rate for such services, only one data point so far (mine) but I'm sure it's accurate).

Very simple. At the end it is all about supply and demand (domestic demand, excluding foreign cash buyers).

Most factors pointing to lower demand:
1. High unemployment rate
2. Rising interest rate
3. Would-be move-up buyers trapped with negative equity
4. High inflation in non-housing items such as energy and food
5. Less sub prime lending; fewer people qualify for mortgage

Most factors pointing to more supply:
1. Retiring baby boomers who need to trade down
2. Foreclosures and short sales; shadow inventory

There is no bottom until supply meets demand. Home prices cannot go up until demand out grows supply, or people's real income after tax after non-housing necessities go up.