You should look at the chart: http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html http://www.nytimes.com/imagepages/2006/08/26/weekinr

You should look at the chart: http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27... We recently passed 150 on the way down. Still got a ways to fall. When will prices go back up? 10 years? 20 years? Never? Why should they go up? I've only heard one reasonable explanation for increasing prices. Apparently certain areas, like New Jersey, are now effectively "full". Therefore people who want to live there will be spending a higher percentage of their income on housing going forward. I don't know if it's true, but it sounds plausible at least. EDIT: the reason for New Jersey being completely built out is NIMBY laws, not that all the land has been used.