Home prices in most metro areas will continue to fall before they stabilize at real prices below the lowest levels of the last 20 years, according to the House Price Forecast Index by University Financial Associates of Ann Arbor, Mich. One of the worst examples is Detroit, where 10 years of real price gains were erased in just four years. The report describes the Detroit metro area as "the canary in the coal mine this cycle," where falling house prices arrived earlier than in other areas. Further researchers note that other metros that have already or will soon converge to pre-bubble real prices include Las Vegas, Phoenix, inland California, and many south Florida metros.
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