My feelings (no expert, just my gut) somewhere around 2003 prices would meet bargain status.
Don't think that 2003 was anywhere near bargain status. When my friends were buying back then, I was shaking my head.
The way I see it, the people who bought in 2003 were far from getting bargains. If you add up all the ownership premiums, they are probably facing a big loss.
Like Patrick said, you can buy at 7% or your can rent at 3%. Take away appreciation and renting is the clear winner. Appreciation has disappeared and some markets are already at 2003 prices.
2000 prices will meet equilibrium and 1998 would be bargain IMH0.
