Half-off sale in housing ?

If you are a believer in long-term mean-reversion theory ( and I most definitely include myself in that camp ), and if every now and then you like to look-up the long-term charts of the Case-Schiller indices of home prices and affordability ( as I do ), you might have found your natural curiousity wondering if the worst is yet to come in the housing market.

I think that after a devastating tumble off the peak of a bubble followed by a period of relative stabilization, it is a natural human tendency to become optimistic.  After all, we survived the storm didn't we ?  The familiar mechanisms of expanding economic production and population growth within the boundaries of finite living space are back in play, are they not ? 

However, cold analysis of the trending housing numbers may dissuade you from your hedonistic inclinations.  And now, one of the most senior & sober analysts on the financial scene, Richard Suttmeier ( whom I have followed for nearly a decade ) is predicting another 50% drop in the US housing market :

http://finance.yahoo.com/tech-ticker/richard-suttmeier-home-prices-could-fall-another-50-515409.html?tickers=len,xhb,tol,kbh,%5Edji,%5Egspc,MAS

http://finance.yahoo.com/tech-ticker/%22waves-of-more-foreclosures%22--more-bank-failures--big-trouble-for-the-fdic-suttmeier-says-535314.html?tickers=xhb,xlf,FAZ,JPM,fre,fnm,C

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