How Far to the Bottom of the Santa Rosa Real Estate Market?

Always the question and everyone has an opinion on when the Santa Rosa real estate market will bottom out. It looks like some think the historical prices are still way out of whack and we should see declines for another year.

My analysis says houses that our priced at 2000-2001 price levels are selling in 30-60 days. Houses priced higher are not selling at all.

clipped from finance.yahoo.com Asha calculates the price-to-rent ratio using the Case-Shiller price index and the "Owner's Equivalent Rent" component of the CPI.  The horizontal "means" in her chart are one standard deviation above the long term mean (i.e., they're not the average...they're a standard-deviation higher than the average*). The higher mean includes the high prices of the bubble years, and the lower one doesn't. Either way, it's clear that house prices are still well above their long-term average level relative to rents. (And don't forget that prices spend about half the time below the average).