In the last weeks the media has been all over the place about the housing bubble. CNN.com has this on Friday:
“But the argument that prices can’t fall in a good job market doesn’t make economic sense: To be sure, a strong employment picture helps demand. But if far more houses are pouring onto the market than can be absorbed by households lured by the new jobs, and if the sellers are pressured to sell, prices will fall. That’s precisely what’s happening now in good job markets such as San Diego and Northern Virginia.”
“Builders are still pouring out near-record numbers of new homes as sales decline, assuring a further fall in prices. “Buyers” are walking away from deposits on houses that were supposedly pre-sold, forcing developers to throw them back on the market at a discount.”
“A year ago, the reigning cliché was that real estate had entered a new world of “no supply.” Now, a record 3.85 million homes are up for sale, and buyers are getting scarce.”
