Housing Bubble Erased, Gov't Now in the Way

How much have U.S. house prices fallen since their peak in mid-2006? It depends on whether you measure them in nominal or inflation-adjusted terms. According to the S&P/Case-Shiller National House Price Index, the fall has been about 34 percent. That’s in nominal terms, and that’s a lot. But since inflation has continued, the fall in real terms is even bigger.