Yes, exactly. Home prices are still over-inflated, since the Government did not allow a natural price correction to take place. 20% down should be affordable for the average couple with a few year’s savings, but it’s not if a home worth 200k is selling for 600k.
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.)