Will Housing Prices Really Fall?

Quick Take: How Fast Will Housing Prices Really Fall?

Excerpt:

The reasons behind the recently ended boom in housing prices weren't a huge mystery. Even with the dot-com crash, the U.S. has only had a few recessionary quarters since 1991. No wonder former Fed chief Alan Greenspan is talking about a return to "normal" business cycles.

A lot of money came out of the stock market after the crash, and much of it ended up in housing. Low mortgage rates and rapidly rising prices got people excited, and before long, regrettable things like aggressive subprime loans and house flipping came into the picture. Yuck.

Now there's just one question: How drastic will the housing bust be?

Comment: I'm glad I am not trying to sell our home. At Sunday dinner, both couples we were with were trying to sell their homes. One couple's house had been on the market for nearly a year, and the other's for many months! I foresee that housing prices in Plymouth will stabilize but not decline.