Housing prices reflect the present value of the anticipated future benefits just as in any other financial transaction.  Home prices will never be zero nor will they be infinity.  Prices will always reflect what the “market” perceives to be the present value.  Prices have adjusted to reflect what consumers are willing to pay for those future benefits today.

The prices today reflect conditions brought on by banks dumping properties received in foreclosure as a result of the shoddy underwriting standards in the mid 2000’s.  Just as the banks were ultimately responsible for the housing bubble, they are now responsible for trillions in losses to the average American family’s net worth via home ownership.

The American dream has always been, and will continue to be OWNING a home.  In the future the American dream will overcome and property values will recover as Americans reconsider the benefits of home ownership once again.