Considering the Fate of the Market
Popular sentiment seems to be that the hot real estate market of the past few years is going to end with a “soft landing,” no drastic price drops, but a gradual settling of home values back down from the stratospheric appreciation rates. This week, the New York Times examines what would happen to the housing market and the economy as a whole if the real estate bubble were to pop instead of letting its air out gradually. The two are inextricably tied, and the fate of the economy may be just as dependent on a healthy real estate market as housing is to purchasing power and consumer sentiment.
