Vince Graham, the New Urbanist developer of the award-winning I’On TND in the Charleston metro area, has a “get real” message for home owners and realtors. Like other established New Urbanist properties, I’On has weathered the current housing slowdown better than conventional suburban projects nearby. Yet owners determined to sell their homes in I’On have had to face the reality that the era of double-digit annual appreciation is over. In fact, recent sales even in I’On have been at prices closer to those of four years ago, as opposed to the record levels of 2006. “Let’s face it,” says Vince, “2006 was an anomaly. Forget about it. A good pricing rule of thumb this year is to consider what homes were selling for at the end of 2004.”

Other experts have echoed Vince’s analysis. Measured over decades, home values nationally have appreciated at annual averages close to the average inflation rate — roughly three percent per year. Which suggests that average home prices nationally, after teasing investors for years at unsustainable appreciation levels, still have room to fall.

– Ben Brown