evergreen16

Shiller on Housing Speculators: If You Can't Beat 'Em, Join 'Em

wow - what an idea, what a rip off.

Median Housing Prices Poised to Fall Back Below $200K

Sounds like a wishful thinking. Looks like everybody is so smart to slap some formula on how to calculate anything for anybody. Which always ends up completely trashed in the comments. So here are my two cents.
Every once in a while, people's thinking and living standards change. And quite noticeably, in the 21st century. You don't find empty box with 4 windows and two bedrooms anymore. People want large houses with 3 car garages and a basement and a room for everybody. Now, you don't have to be an expert economist like yourself to realize, that cost some money. So we are no longer comparing the same things. In a parts of the country you will find properties below the cost of replacement.
The problem, as you missed in your article, is no the price, it's the money supply. Try to get a loan...
Anyway, dropping price is not a solution, only adding to the problem. 10% of the households are underwater now, and imagine the much higher number of people if the price declines another 10%. People do need to move for work, that is the standard in the global economy. And if all the current sellers loose all their equity - they'll have no money to buy next house, no matter what the price. So while lower prices may seem like a nice idea, you might just get more than you bargained for.
Happy house hunting!