Some rudimentary regression analysis here: I just put a ruler on the screen and extended the 3 decade long straight line to see where the mean should have been for 2007. It looks to be roughly 2003 prices. I have long maintained that is where we need to get back to in order for prices to make sense again. Prices intuitively made sense to me back then as people with good jobs could afford to buy nice homes in nice neighborhoods with top rated schools. The real estate world went bonkers near the end of 2003 and got downright insane in early 2004. I stand by my prediction that the market for good homes in good areas will return to the levels in early/mid 2003. Anything beyond that would be a bonus for buyers.
