Historical Home Price Update

The following is the updated chart of the historical Case - Shiller Home price index.  The dotted red line tracks where we would have to fall in order to get back to the historical mean home price.

Usually bubbles tend to "over" correct so the dotted red line may turn out to be an optimistic projection.  The most recent bump in the downward price collapse was the artificial home buyer tax credit which lured in some new owners of the American nightmare.

h/t The Big Picture