I just witnessed my first house auction, purely as a looky-loo. Nice little place on a fairly large lot. It went for $85,000. A previous owner of the property happened to show up; he too was playing looky-loo. We got to talking, and he said that he had sold the place in 2005 for almost exactly $100,000 more.
Obviously, this is far, far
from the most extreme case of home depreciation. But this anecdote tells you something about the shape of our economy. Is Fox News still trying to convince people that our big problem is inflation...?