If you live in certain sections of California or Florida or Arizona or a few other places, well, the sky is falling. Run for the hills.
Your homes are still way, way over-inflated, even after recent price drops: this Wall Street Journal article pegs the ratio of median home price to median personal income level at 11.1. Meaning, I guess, that your house is worth eleven times your annual salary. This is insane.
If you live in the Chicago area, though, hey, guess what? Your home went up (on average) 1.2% last year. Sales went down, but prices went up. Which means, I guess, that demand was still stronger than supply even though sales were down?
Yet more evidence that talk of housing bubbles is regional, and I don’t live in one of those regions.