Wednesday, December 7, 2011

Home Prices Are Still At The Top Of Their Historical Range Before The Bubble

Note the inflation-adjusted similarity of the current index value to the late 1980s and the late 1970s. 

This means prices could continue to fall at least another 7-8 percent from April 2011 levels, and easily overshoot to the downside as the imbalances continue to correct.

And it could take a very long time.