Case Schiller is a common Home price index used by real estate professionals to help determine trends in home Pricing .   I saw one today that i thought was pretty interesting. Red line represents the historic average since 1999 and blue line represents CS index.

there is a couple points of interests to point out 1) from 2000-20007 we were increasing homes beyond there historical average(2007 was peak) 2)2009 case-schiller index came back to the historical average.  so what does this mean.   

Hopefully it means that homes pricing are finally getting back to where home prices belong. Does this means prices are done falling.  Probably not,  there is still a considerable amount of  inventory of Foreclosed and short sales homes out there, which will still drop the home prices.   

The good is, this is still an amazing time to buy or invest in real estate.  it may take a long time for the market to get back to where it was in 2007, but hopefully we are on the bottom half of this decline.

tell me your interpretation of the case-schiller index