How much further will US house prices fall?

Houses are still substantially over-valued even though prices have already fallen by around 10% on

the Case-Shiller national index

An additional decline of between 10% and 15% this year would

put house prices back in line with the fundamentals.

However, in a market driven by fear and panic,

there is only a slim chance that house prices will stop falling once the price-to-rent or price-toincome

ratios return to their historical averages.