[PEN-L:32674] Re: A question to FMC: Housing Bubble?

[Doug Henwood <dhenwood@xxxxxxxxx>]

Sabri Oncu wrote:

> Do you have any hard data supporting or refuting the bursting of
> a housing bubble in the area? Or do you thiink this is just a
> normal drop in a period of economic hardship?

Most U.S. housing indicators have been strong. New house sales fell
in Oct, but they'd been rising since February, and are still over 1m
units at an annual rate. Existing house sales rose strongly in Oct,
and are well above June levels. Builder indexes are strong, and so is
mortgage demand. There's talk of saggy prices, like what you recount,
but the normally cyclical housing market held up very well during the
recession. This will either be vindicated by a broader recovery soon,
or it could be a remaining unpopped bubble (like the dollar).

Doug