How to Handle Those House-Price Declines

It seems that analysts who last year were forecasting double-digit declines for 2008 were right on the money -- and there are ways to deal with it whether you're looking to sell or buy a home.

"Home prices are forecast to drop in the overwhelming majority of markets in all 50 states," predicted HousingPredictor.com analysts in November.

In December, Moody's(MCO Quote) Economy.com predicted that many metro areas would record losses of 20% or more in 2008 during this downturn. Its analysts expected the national median price for single-family homes to drop 13% through early 2009, but putting the actual price decline well over 15% once sellers' discounts were considered.

Numbers released Tuesday by Standard & Poor's(MHP Quote) Case-Shiller Home Price Index show that the 10-City Composite set another new record, with an annual decline of 11.4%. The 20-City Composite recorded an annual decline of 10.7%, with 19 of the 20 metro areas tracked reporting declines -- and 10 of those reporting double-digit declines. ...