[quote=underdose]Why do you say no more than 30% for inflation? That is an extremely modest 3-4% per year, and the arguably grossly understated CPI was running 6% for much of the bubble.[/quote]
home prices match income inflation not CPI. Real income has fallen during the last 10 years so affordability and prices will decline accordingly. Right now due to the severe unemployment situation prices will correct even more than that.