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At Agora, Barry Rithollz had a bunch of charts much like this one and they were saying that this recent correction has taken us to within 15% of the median line for value.

However, given that the run up was so insane, it’s almost a guarantee that the correction won’t end without a severe overshooting of that line which means we probably still have another 35-40% correction coming in the housing market.

15% to get back to break even, then another 20-25% to take us undervalue.

Obviously some areas will be hit harder than others, but I tend to agree that it’s not over in the housing market and there will be some bargains to be had.

In fact, Barry also advised people to start looking at real estate as an investment now in some areas that have been especially hit hard, ie, Florida, because you’re never going to pick the top or the bottom in any market.

clipped from www.ritholtz.com
I asked Steve to update Shiller’s NYT chart, now that much of the government intervention has run its course. There is still massive Federal Reserve subsidies in the form of record low rates. But the short term bounce caused by HAMP, Foreclosure abatements and first time home buyers tax credits are mostly over.
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