For the most part, houses across the board need to drop about another 50%, maybe even more, before they represent what a home price should be (Approximately 2x one’s gross income, as a rule of thumb). The problem is a lot of people mistakenly believe that the price (they say “Value”) of a home should go UP, when in fact it should be stable or go DOWN (as supply increases, and manufacturing improves). There is a 116 year study of prices to back that up.
The price of a home increasing is due to 1) Dollar devaluation or 2) Price manipulation, in general (Especially if it lasts more than a few years). Hence the decades old rule of 2x one’s gross income. Houses are still in a bubble, and need to drop quite a ways to be “affordable” (Read: “Appropriate”). People bought houses they normally couldn’t have through government manipulation. Or we wouldn’t have the bubble we do today. Now that the insane debts people were building are being cleared out, the prices MUST fall to affordable levels, and that’s no where near as high as they are now.
The house are already selling at half the cost it would take to build them. That is way under a normal selling price.
And if they drop any more they will be free. Housing prices here are way, way, way down. Prices are now below what they were before the housing boom even started, lower than they were 15 years ago.