The residential housing market has another leg downward to go. From ARM hitting the adjustment time very soon.
Then we have those that are unemployed who are going to lose thier homes.
Then with a large increase in the number of foreclosed properties, property values will take another hit. Leading to more people doing a strategic default
As for the job market
It will not get better for a few years at best. The US is going to see government layoffs in greater numbers (local and state). Leading to a reduction in consumer spending, and because of that a further reduction in private sector employement