One comment I have seen on this blog often is that houses will alway correct beyond the trendline. Thes graph that robson posted above seems to prove that. However, there are a few examples of it taking 20 years to do so and after many up and down movements in which inflation adjusted price did not go below the trend line. I am talking about the periods from 1890 to 1918 and 1945 to 1965.The last two cycles follow the immediate overcorrection idea. Obviously, there is currently room for a huge correction regardless of crossing or not crossing the trendline.
