According
to Allen Greenspan the housing market might be in much better
shape than many more pessimistic analysts seem to think.
The
"worst may well be over" Greenspan told an event
audience hosted by BMO Financial Group in Canada last Friday?
"I
suspect that we are coming to the end of this downtrend, as
applications for new mortgages, the most important series,
have flattened out."
"There is a good chance
of coming out of this in good shape, but average housing
prices are likely to be down this year relative to 2005. I
don't know, but I think the worst of this may well be
over," he added.
Additionally, Mr. Greenspan
noted that much of the increase in home prices was pushed by
the fall of communism, which caused disinflation that lowered
bong yields. Consequently, home values were pushed higher (more).
So has the housing market
stabilized, or is the worst yet to come?
