I think the chart says it all, prices are returning to their pre-home buyer tax credit levels. Even though you will be hearing news that home sale prices have increased, that information is based on closed sales.  The data in this chart is based on the under contract price which gives you a real time picture of which direction home prices are going.

I am staying on the optimistic side of the experts and saying “Home prices should level out after a 10 % decrease from there recent highs”.