Are Homes Still Way Over-Priced?

This Wall Street Journal piece makes a strong argument that home prices have a ways to go before they hit bottom.

Home Prices: Low, But Still No Bargain

(WSJ) Forget low mortgage rates and the buyer's market. Real-estate prices still have a long way to fall.

Homeowners are watching anxiously for any signs of housing market stabilization. So, too, are all those who believe the market may hold the key to the economy.
And yet the most recent data makes for more gloomy reading.

The closely watched Case-Shiller index, which tracks prices across twenty major cities, shows that through January the crash was getting worse, not better.

And yet, even after these declines, homes overall still may not be that cheap relative to wages. More on that later.

Read the whole commentary.