[quote=sdrealtor]There is a fairly widely held hypothesis that because we can find so much more information online about real estate that the market is more efficient and hence prices should be relatively lower now.[/quote]

sdr, I think I’m going to correct you by saying that I don’t think that is how I would describe the “fairly widely held hypothesis”

You say the hypothesis is that the market is more efficient and hence prices should be lower now.

I think, a few years ago, the hypothesis was this:
1) Prices are well above fundamentals.
2) Without the internet, it would take a long time for prices to drop. With the internet, prices should adjust more quickly to a level supported by fundamentals.

The hypothesis was about the speed of correction, not the price level to which it would correct.

You have to admit, such a large plunge in 3 years from 2005 to 2008 is a pretty rapid adjustment.