Home prices may be returning to their long-term trend; at an inflation-adjusted 40% lower than...

|By:, SA News Editor

Home prices may be returning to their long-term trend; at an inflation-adjusted 40% lower than their peak five years earlier, they're just 7.5% above their average level from the mid-1940s through the 1990s. But just as home prices became detached from their historical trend during the bubble, they could overshoot during the correction and drop below the norm.