There's a lot of talk in the real estate world right now about low inventory—and how that low inventory is driving up prices. But while there's no denying the inventory is lower than most buyers would like it to be right now, when it comes to pricing, things aren't nearly as bad as you might think. According to the Real House Price Index from First American (which factors in income, mortgage rates, and unadjusted home prices to track "real" house prices over time), real house prices in the US are down a whopping 36.9% from their pre-recession peak, putting consumer house-buying power at a near historic high.
If you've been thinking about buying, don't let the low inventory stop you. There are plenty of homes on the market, and, according to this report, you still have the power to get those homes at a great price.