The Case-Shiller 10-City Index remains 33% above inflation-adjusted, pre-bubble levels.  Seven out of 19 scrutinized markets remain overvalued by at least 31.5% relative to the 1997 base value.  Los Angeles wins the prize in November 2009 as the most overvalued market within the Case-Shiller Index at 140.8% of inflation-adjusted, fair value. 





Housing prices remain materially overvalued.  Recent failed efforts to prop up home values have only delayed the inevitable.  These efforts have lengthened the duration of the collapse and likely deepened its eventual trough by creating an incremental source of foreclosures and collateral economic damage.


 
(Case-Shiller 10-City House Price Index)