A 50 percent drop means that anyone who has bought or refinanced in the past 15 years would be owing more than they could sell the home for.

This is why short sales, where the bank accepts a loss, are becoming more common.

Seller cuts price of house by $1 million

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Mary Anne Windes, a veteran broker in Destin who has Real Estate Professionals of Destin, said in an e-mail interview, “The trend is that prices are moving to the same level that they were in 2003. As you will recall, 2004 and 2005 saw tremendous and often unrealistic growth. The market has now corrected itself. Many properties doubled in value during that time, so a drop of half the value is not unrealistic right now if a seller needs to sell.”

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