Real estate matters tends to be very local. When prices rise sharply in an area, they tend to fall sharply too, especially if median prices surpass the rule of thumb of being 2 to 3 times median incomes for the area. When they do, people on average are buying more house than they can afford. Such situations cannot be sustained. The last time property in my current town was revalued for tax purposes was 2009. As a Lister (Assessor), I see all of the property sales. On average property is still selling for 10 to 20% below assessed value. There has not been any pricing recovery here. That doesn’t mean prices can’t drop further if the overall economy tanks, but there has not been any speculative increase here such as in many parts of the country. Each geographic area has its own issues, good or bad driving real estate prices. Too much good can drive real estate speculation to absurd heights and that has happened in many areas. What is keeping prices suppressed where I live is a slow but ongoing population decline due to young people moving away to areas with better job opportunities, leaving us with an aging population that mostly isn’t in the market for homes. Our school enrollments drop about 1% a year and have been for some time. Rents keep rising however due to more demand. Fewer people can afford to buy homes even at suppressed prices and so they rent.