From Clusterstock and from Financial Sense:
"The median value of a U.S. home in 2000 was $119,600. It peaked at $221,900 in 2006. Historically, home prices have risen annually in line with CPI. If they had followed the long-term trend, they would have increased by 17% to $140,000. Instead, they skyrocketed by 86% due to Alan Greenspan’s irrational lowering of interest rates to 1%, the criminal pushing of loans by lowlife mortgage brokers, the greed and hubris of investment bankers and the foolishness and stupidity of home buyers. It is now 2009 and the median value should be $150,000 based on historical precedent. The median value at the end of 2008 was $180,100. Therefore, home prices are still 20% overvalued. Long-term averages are created by periods of overvaluation followed by periods of undervaluation. Prices need to fall 20% and could fall 30%....."
Shiller's Interesting video discussing real estate prices. For instance, prices still well above average and a look at rental prices (which never went up much to start with):
Shiller House Prices Still Way Too High: Tech Ticker, Yahoo! Finance:
"Yale professor Robert Shiller stopped by recently to discuss Obama's housing fix, I also asked him about the housing market in general.
Specifically, where are we in this historic price collapse? Finally nearing the bottom?
Not a chance, said professor Shiller--unless the government finds some way to miraculously levitate prices again.
Despite the 25 percent nationwide decline since the 2007 peak, U.S. house prices have still only fallen halfway to fair value. So whatever you think of Obama's plan, don't count on a quick housing-market turnaround."
Oh, and lest you think Schiller is just some idiot financeprofessor, remember he called the internet bubble and the Real Estate Bubbles long before the general market collapsed.