Category: Housing

Housing is slowing down. No question about that: inventories are rising and sellers are having harder time selling. It's becoming a buyer's market. The following two quotes from WSJ by Justin Lahart give you a very good summary of the current housing market.The question is no longer whether housing is slowing, but how severe the slowdown is going to be.Still, a steep price decline is unlikely. Home builders, like sellers in general, will be slow to lower prices, opting instead to hold on to inventory in hopes of an eventual buyer.Reference* Investors Retreat From Housing Market -- FREE from WSJ.com* Cracks in the Foundation by Justin Lahart, WSJ.com (need a paid subscription)

More signs point to a slowdown in real estate: mortgage rates up, inventory up, time to sell up, prices paid (down?).Reference:Real Estate Begins to Cool by The Big Picture blogReal Estate Begins to Cool - Follow UpRelated:Rise in Supply of Homes for Sale Suggests Market Could Be Cooling by WSJ (need subscription)

Are we experiencing a housing bubble? Overpriced houses? A lot of speculation. I think so. I think this craziness has to stop sometime -- especially in the NJ area. That's what I think. See what Celia Chen, from Economy.com, has to say about the housing bubble in this article, U.S. Bubble Trouble. She does not say the bubble will burst, but she sees the housing market cooling considerably if the rates move up to 7%. Also, she explains the effects of the bubble actually bursting. Very good article.