History says home prices haven’t yet hit bottom

Florida real estate prices aren’t quite at their bottom, suggests a St. Petersburg Times analysis of real estate prices and their appreciation beyond inflation in past years. In the 1970s, home prices rose about 41 percent higher than the rate of inflation. During the 1980s, they increased 51 percent beyond inflation, and that number rose to 59 percent above inflation in the 1990s. Today, even the state’s depressed housing prices are 66 percent above inflation. To return to historical appreciation rates, current median home prices would still need to fall another $10,000 to $15,000.