You can count on housing dipping below the mean before the next housing boom starts.
As I am sure you know, housing goes up about with inflation and simply can’t outpace salaries and rents. It is very doubtful we will see salaries and the rents they support skyrocket, so yes, home prices WILL revert to the mean.
Many people don’t understand this or refuse to listen about it, but they will feel the effect of it.
On a related note, check out Minyanvilles take on yesterdays stock rally:
http://www.minyanville.com/articles/rally-WMT-stocks/index/a/14869