The national numbers are not looking good short term. Many local markets will rebound/stabilize by this spring IMO. 2009 is quite a dire prediction, I'd like to hear your rationale.
One rationale for Neanderthal's dire prediction could be based on the fact that in the past, most real estate markets rose and fell on ten year cycles, or 5 year drops followed by 5 year surges. The great news is that the surges almost always dwarf the drops by at least a 3:2 margin, which have created a 45% upward tilt in property values since WW2.
I think the next growth period will buck the 5 year drop trend, and will come sometime mid to late 2007, fueled by retiring baby boomers, who are only starting to retire.