We just got the best residential news in a very long time with the S&P/CaseShiller Home Price Index slightly up from 139.18 to 139.84. It seems that the residential market is at or near its bottom, but I still believe there might be a slide when the fall comes around. People generally seem to be more excited about buying houses in the spring and summer. I also find it very scary how the gap between new home buying and existing home buying is growing… What is more frightening is the fact that the commercial real estate market is on a tear downwards almost exactly 2 years after the residential market. The only difference is that the government has not provided a strong backdrop to commercial prices so it seems as if no bottom is in sight even though CRE prices have already fallen more than residential. How quickly will the losses accumulate at the banks? I certainly know that a business owner has much less reason to stick out a loan on CRE than he has when thinking about his own personal property. How many keys will be left with the banks in the coming year and just how low can the prices go?