Home Prices Are Not Low

A Washington Post article on the relatively good new home sales data reported for May made a case that the housing market is rebounding (it is). At one point it told readers that "home prices are low."

This is not true. Home prices are roughly back to their long-term trend. They are low relative to their levels of the housing bubble years (1996-2007), but not compared to the prior hundred years of U.S. history.