(See recent posts on Phoenix Case-Shiller Home Price Index.)
The St. Louis Fed (Federal Reserve Bank of St. Louis) looked at the housing crisis by price levels, “Examining the Housing Crisis by Home Price Tier,” and came to what is becoming the conventional wisdom, that Phoenix may have overcorrected on the down side especially for the least expensive homes. (I’ll post an example from Robert Shiller of Case-Shiller Home Price Index fame later.)
Phoenix, on the other hand, may have overcorrected, with the lower-tier home price index plunging well below middle and upper-tier home price indices. Interestingly, Phoenix’s middle and upper-tier home prices spiked nearly as sharply as those in the lower tier, and it is the only city in which upper-tier prices peaked above middle-tier prices.