Not sure where you get the idea there hasn’t been a “natural price correction”? Even in the best market in the country (Washington DC metro area), everybody took a 35% to 50% bath ~ and there are only a few places where prices have climbed “back up” (and that has to do with unusual conditions ~ near or around Fort Belvoir or subway stations.)
I’m saying there hasn’t been a natural price correction because the Government has stepped in to artificially prop up the lenders and many mortgage holders to reduce the effects of what should have naturally occurred. The 35-50% reduction you cite seems pretty accurate, but that only means that the real correction should have been greater, especially in the markets where the greatest inflation of home prices occurred. In my area, for example, I reckon the home prices are still at least 50% higher that the actual value of the homes.