2008-02-15: Homes in Bubble Regions Remain Wildly Overvalued
There is a strong long-term correlation between the two figures. And in many regions, house prices would still have to fall a very long way to get back into line. Just to get down to seven times incomes, prices would have to fall 37% tomorrow.
How far? Try around a third in Florida and Arizona -- and closer to 40% in California.