Thursday, March 10, 2005
Housing bubble beginning to deflate?
The Census Bureau reported on February 28 that seasonally-adjusted new home sales declined in January by 9 percent from December and by 9 percent from the previous January. The decline in sales was accompanied by a 15-percent drop in median sale prices from December and a 5-percent drop from the previous January.
This report fuels speculation that the housing bubble is bursting, at least in some parts of the country. The regions with the highest prices, and those most vulnerable to price deflation, tend to be those with the most land-use regulation. For more information, see Smart Growth and Housing Bubbles.
This report fuels speculation that the housing bubble is bursting, at least in some parts of the country. The regions with the highest prices, and those most vulnerable to price deflation, tend to be those with the most land-use regulation. For more information, see Smart Growth and Housing Bubbles.
