The Perfect StormLeading research and indicators tell us there's a perfect storm brewing:John K. McIlwain, senior resident fellow at the Urban Land Institute, expects home prices to fall another additional 10% this year. That could push foreclosures and underwater mortgages over 21 million by December 2010.Home sales inventories are falling. Contrary to popular belief, this isn't good news for sellers, because higher prices (and even bidding wars) increase costs for buyers, who are too smart (and too worried about unemployment) to be burned by bidding wars again this time. Sales will fall as they return to the sidelines.Of course any sales depend upon employment, which stands at 10% nationally, and is higher in 16 states, including disastrous real estate markets (DC, FL, CA) and states where the real estate market was considered "balanced." Job losses mean more foreclosures and less purchases.From: The Day After, Part 2.POSTED by: Matthew Ferrara, January 29, 2010January 29 2010 - Hampton11YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.