May 19, 2006 — Former Federal Reserve Board chairman Alan Greenspan declared that the froth is finally off the housing bubble, but emphasized that he is not losing sleep over it. The boom is over, Greenspan told more than 900 attendees this morning at CB Richard Ellis Inc.’s annual market forecast in New York City. Much of the recent growth stemmed from home sales to investors. Although recently, despite still-high residential asking prices for houses and condominiums, those properties are drawing fewer bids than in previous years, Greenspan said. However, this turn in the market does not unduly concern him. The United Kingdom and Australia housing markets enjoyed much bigger booms than the recent U.S. market, and those markets have flattened out without significant damage to those nation’s economies. We ought to be able to work our way through this without any problem, Greenspan said.
Greenspan Unworried About Bursting Bubble [CPN Online]