Area real estate professionals said it's a stunning turnaround from a local real estate market that expanded by double-digit annual increases for much of the last decade. "It's astonishing, absolutely,” said Conklin, owner of Appraisal Office Biz in Traverse City. "We're seeing a lot of sales that are below what the market value might have been even a year or two ago.”

The state's lengthy economic slump continues to chip away at the region's once-percolating real estate market. Land values are slumping and property foreclosures continue to surge throughout Michigan.

During the past four years market prices for existing homes in the area declined 5 to 10 percent, according to Exit Realty agent Sheila Richardson. The market has many home sellers trapped in a Catch-22. Houses that are moving are those priced around $100,000 and these are typically the home owners who can least afford a loss.

“It’s not in someone’s best interest to sell unless they have to,” said Shirley Schafer, broker/owner of Pro Realty of Cadillac. “But it’s a great time to buy.”

The deepest national housing decline in 16 years is about to get worse.

As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under, according to Realtors, economists, analysts and a Federal Reserve governor. Financial stocks also could extend their declines over mortgage problems.

The American dream of owning a home is becoming a nightmare for some Michigan families.

After investing their life savings in a home, many families facing layoffs or pay cuts are finding it impossible to pay their mortgages. What's worse, the value of their homes -- often their key investment -- is deteriorating.