Not that I'm a real estate expert, but I not only agree with Fortune's forecast, I was saying the same thing to a real estate agent recently and he told me I was nuts. I guess Fortune Magazine is nuts too! "Affordability The oft-used point to support a bottom in U.S. home prices is affordability, which is underscored by the fact that mortgage rates are at historical lows. While we can't disagree that financing costs are lower than ever, we do disagree on affordability. First, credit standards are higher and lenders typically require larger down payments and more upfront points, which increase the "all-in cost" of a house. (If the consumer can get a loan at all.) Second, we believe, based on our supply and demand models, that home prices will fall another 15% to 30%, which implies that the U.S. housing stock is actually overpriced. Finally, and most importantly, our analysis actually shows as houses get "cheaper," or more affordable, demand goes down." Why the housing bulls are wrong - Fortune Finance This is why I'll never see another economic "Boom" in my lifetime. But I actually prefer it that way. Without humongous booms, there is little chance of deep recessions. Slow and steady growth is what we should be striving for. Not another government created illusion of prosperity.