this market be heading down much further.. i wish it weren't so... the realtor with those kinds words about 2006 being "behind us" is nice to listen to if you own... unfortunately, the adjustment referred to has not truly yet taken place... unless you call the first 10% down after 500% up in 7 yrs. an adjustment.
2007 and 2008 will be the adjustment years - without hurricanes, and with legislative help, South Walton real estate will be worth 35% less for lots, and exactly same for homes in 2008 than people are 'transacting at' now.. In other words, we're headed back to late 2003 levels, not 2002. If we have a hurricane, we head back to 2002 levels.
If you own a home that you think is now worth 800k, and can afford to sell in 2 years at 490k (or 390 if we have a hurricane, and ins. adjustment again)... then do NOT worry... because in 10 or 15 years, history tells us that you'll probably be fine
on the other hand, if you can't or just don't feel like gambling on that, its ok to take a loss, and sell now at early 2004 prices....
it may be worth your mental health