If you add 6% a year to homes that were bought in 1998 @ 300k they wouldn’t have reached today’s 700k levels till 2013. If prices drop 20% between now and 2009 then they will be just about in balance. That seems like quite a likely scenario.

(adding 6% a year)
$300,000.00 1998
$318,000.00 1999
$337,080.00 2000
$357,304.80 2001
$378,743.09 2002
$401,467.67 2003
$425,555.73 2004
$451,089.08 2005
$478,154.42 2006
$506,843.69 2007
$537,254.31 2008
$569,489.57 2009
$603,658.94 2010
$639,878.48 2011
$678,271.19 2012
$718,967.46 2013