On an inflation adjusted basis, homes prices have fallen 33% from the peak in 2005. The below chart shows single family home prices are now back in a range that existed from the late 1970s into the mid-1990s. Chart of the Day notes, "...a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value (1.6% loss). Not an impressive performance considering that nearly three decades have passed."
Source: Chart of the Day