Dead. On. Accurate. There is a reason why I had a "Forbes 1996" sticker on my car. We are caught is a vicious cycle of:
Increased Distressed Sales =====> Lower home values =====> Declining home equity =====> Rising foreclosures =====> Increased distressed sales
I was on a call with one of the top Wall Street housing analysts and she laid out this case. She was pleading for the regulators to impose some sanity and has called out "mark-to-market" rules as a major contributor to the problem. Because of this, she is calling for 5,000,000 more lost homes due to foreclosure over the next 3 years which with further exacerbate the already horrific housing market. The really bad news is that housing leads consumer spending which leads the economy. Based on these facts, the housing market will not begin to recover until 2011.
Housing prices will bottom out when the last wave of ARM resets have worked their way through the system, I think you are right about that date.
But we will not see 2005 bubble prices again for another 20 years, unless America goes the Zimbabwe route.