Why are Prices of Homes Dropping?

Prices are dropping because of the anomaly that occurred during the market boom. Price are now adjusting to the inconsistent and unsustainable growth that occurred during the first six years of this decade. In other words, the market is not on the decline... Rather, it is moving toward stability, which will mean a healthier markets in the future.

Excerpt from Realtor Magazine, April 2009 Issue, written by Professor Karl Case of Wellesley College and contributing author of the Case-Schiller Home Prices Indices, a quarterly nominal housing price report.