[Torie]

How much do you think real estate is "overvalued" and where, and how much will it drop in value and when? You need a rather substantial and rapid drop to get traction for your thesis. My opinion? I think real estate is somewhat overvalued in certain markets, and mostly for homes, and not by that much, given continuing low interest rates, and the level of incomes in those markets. It was much more overvalued in 1989. I don't see a big valuation move, absent a substantial rise in interest rates, or a severe rescession, neither or which are on the horizon. JMO.

[GodGunsGuts]

First, as the article that got this thread going already demonstrates, housing prices are already dropping nationwide. But to answer you question, I think the following links give a pretty good indication to what degree housing is overvalued, and where:

http://www.housingbubblebust.com/Fed/GDPvsHSG.html

http://www.housingbubblebust.com/HM/HM-Metros.html