Housing out of balance?

Yglesias thinks so, looking at the chart. But the opinion of the economy is what counts, not what Yglesias says.

The charts says that housing was out of balance between 2003 and 2009. But the economy is still undecided from mid-2009 until today.  The trend is down, but close to equilibrium.  Let the economy determine housing needs, not Yglesias.