Where Are We Headed?

Some seem to think that the bailout - whenever it finally passes - will stop the downward slide of housing prices. I doubt it. As the post on Calculate Risk states "Right now prices are still too high."

Another very informative post looks at current housing prices from three different angles: real prices (inflation adjusted), price-to-rent ratio, and price-to-income ratio. All three indicate that prices still have ways to fall.