Houses that sell are currently priced at around ’04 levels in a lot of places. There has been 3 years of inflation eroding the value of the dollar. So you’d need a 9.3% bounce just to get back to real 2004 prices in 2007 dollars. By Fall of ’08 assuming things go sideways till then we would need 12.5% etc etc

Maybe thats how it will turn out. Prices slowly eroded by inflation slowly until they are back at long term average? Might be a really long wait though if that is the case. If prices are about 100% over the long term avg then 2004 prices won’t be corrected by inflation alone until 2027.