I am not sure why people so often compare to prices in 2000-2003 when trying to judge what the market bottom might be. Real estate is cyclical, and the last trough was in 1996 or so. Inflation since then has been 40-70%, depending on how you measure it. So prices that are 140-170% of 1996 prices are possible.
The actual peaks and troughs vary from cycle to cycle, so I do not know if we will hit that level in this downcycle, but we should at least entertain that possibility. Without massive government intervention to prop up house prices, it is quite possible that house prices would already be at that level, or even lower. After all, the peak that preceded it was the highest ever, and a large wave tends to have a deep trough following the high crest.
