Sunday, November 25, 2007

Why I'm glad I don't own a house

Forward-looking indicators suggest that the housing sector may be in free-fall from what felt like the basement levels of a few months ago. Single family home construction may be down over the next year by as much as half from previous peak levels. There are forecasts implied by at least one property derivatives market indicating that nationwide house prices could fall from their previous peaks by as much as 25 per cent over the next several years.
--Larry Summers, Financial Times, on bad times ahead for housing prices

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