Economist Scott Grannis, in his excellent blog, Calafia Beach Pundit, uses the charts below to point to the fact that, after falling by about one third, home prices have remained steady for the past year. This, he argues, combined with reduced inventory and low mortgage rates, indicates a stabilized housing market. Some good news!
Chart showing the inflation adjusted prices for homes in the 10 top metropolitan areas since 1987.
Chart showing inflation adjusted prices for homes in the 20 top metropolitan areas since 2000.