A recent Wall Street Journal poll of 49 economists paints a fairly sanguine picture of the housing market. Although more than 2/3 of the economists said they thought the worst was behind us, as a group they still see prices on a national level falling slightly in 2007. “We’re nearing the end of the slowdown for most markets,” said Ethan S. Harris at Lehman Brothers. The consensus seems to be that unless you are in a particularly bubblicious market like Florida or Arizona, the pain should be fairly muted. “Tthis is a small bubble–Prices are just about 20% too high,” says Harris. “In the history of bubbles, this will go down as one of the smaller ones.”
Economists Say the Worst Of Housing Bust Is Over [Real Estate Journal]
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