A more recent Reuters article predicts no recovery for a generation:
The Housing market is likely to remain weak and may take a generation or more to rebound, Yale economics professor Robert Shiller told Reuters Insider on Tuesday.
Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, said a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.
While regions like Central Pennsylvania have seen more price stability, the long term stagnation throughout the economy shall have residual effects in this region."I worry that we might not see a really major turnaround in our lifetimes," Shiller said. . . . . . He said suburban areas in particular might endure further price declines as high gas prices increase demand for "walkable cities."