RealtyTrac (http://www.realtytrac.com/), the online marketplace for foreclosure properties, today released its August 2006 U.S. Foreclosure Market Report, which shows 113,300 properties nationwide entered some stage of foreclosure during the month, a 22 percent increase from the previous month and an increase of nearly 50 percent from August 2005.  The report shows a national foreclosure rate of one new foreclosure filing for every 1,021 U.S. households, the second highest monthly foreclosure rate reported year to date.

Based on the Japanese experience we should expect that home prices will continue down for another ten years minimum, possibly fifteen. Prices will eventually return to 1996 values in real (inflation adjusted) terms.