Conservative Property Index Predicts We Are Less Than Half Way Through Fall

The most conservative price data on residential properties predicts that values have fallen from the peak less than half of the way towards their long-term trend.

The total projected fall from Federal Housing Finance Agency (FHFA) data shows a peak-to-trend fall of 27%. Values on this index have fallen 11% from the high. The index predicts prices will fall an additional 18% from their current levels (please see chart above “Figure 2: Monthly House Price Index for USA”).