Business Week: 2012 – "With any luck, three years should be long enough for the U.S. economy to recover and for the nation's housing inventory to shrink to more normal levels."
FHFA Price Decline Study: 2010 – "Indexes suggest that the time from peak to bottom tends to be about 3¾ years, whereas the median recovery period (from bottom to prior peak)was 6⅔ years."
In Hampton Roads, we have already fallen off the cliff and are slowly rolling down the mountain. So, should you just wait to sell your home? If you do not need to sell, do not put your house on the market. But, if you need to, for what ever reason (change schools, job transfer, baby on the way, etc), do it now.
Case Shiller predicts that it won't be until 2012 for houses to sell for what they are selling for today.