Does anybody know where the bottom of the real estate market is?  According to the Wall Street Journal, it is not here yet.  The latest newsworthy drag on the real estate housing market is the subprime mortgage bonds that are now flooding the market at prices that are much lower than where many banks want to sell, according to the Wall Street Journal.

Many experts commeted that this is a bad omen for residential real estate market prices and homeowners trying to sell their homes.  The glut of the subprime instruments is even having an impact on homeowners who are trying to refinance their homes.  The very low prices for the subprime loans is putting heavy downward pressure on the value of homes in nearby neighborhoods, continuing to drag home selling prices even lower.  These subprime loans are having a negative impact on the federal government's efforts to stabilize the housing market, and thus the broader economy.

According to Karen Weaver, global head of securitization research at Deutsche Bank AG, the steepest losses are on subprime loans, were lenders generally are recovering only 26% of the original loan amount.  These prices continue to decline because investors won't buy these properties until they become attractive for investment.

Many regions across the country with the most depressed real estate prices are those same regions that only a few years ago experienced building frenzies and wild price increases, with no justification.  Experts feel that the currently depressed prices are a market correction from the recent price explosion and that eventually the real estate market, nationally as well as in the hardest hit areas, such as Tampa Bay and Las Vegas, will return to historical norms and resume slow and steady growth.