We have only just begun....

Here is great article explaining why house prices are about to slip into the abyss. The article contains four classic charts that show the extent of real estate overvaluation.

1. House prices have outpaced inflation.
2. Even adjusting for quality, prices are way out of line relative to historical averages.
3. Despite the recent limited fall in prices, houses are still far too expensive.
4. New home sales have fallen, but they have a long way to go before they return to the levels seen before the bubble. Inventory is running at 7 months of sales and rising.
Things are going to get a lot worse, before they get better