Interesting question, I guess it depends on your perspective and market. Was it fair to buyers in 2002-2005 when prices took off and became out of reach for many? Is it fair to sellers the last few years when prices have dropped and put them in a negative equity position?  We could debate it all day.

One company, National City Bank, has come out with a Housing Valuation Analysis. They break down different markets and rate them as Under Valued, Fairly Valued, Moderately Overvalued, and Overvalued. What's interesting this there are only a few overvalued and moderately over valued markets. The majority of the markets are fairly valued or undervalued. If you "hover" of your market on the map, the stats they use will be displayed.

Supply and demand effect prices more than anything else. Regardless of the price if there is no demand and an over supply prices will continue to fall. With prices in a more affordable range demand should increase and inventories should start to fall. This is still encouraging news.

In my opinion there are 2 factors holding down the market. The availability of money, and the current economic conditions.  Once banks start lending again and we get inflation under control we will start to see this market turn around.

https://www.nationalcity.com/main/micro-site/economics/commentary-analysis/pages/housing-valuation-analysis.asp?WT.vanity=HouseValuation