Monday, 4 February 2008

2005: U.S. Housing Bubble a Myth?

Economist's Corner: The Housing Bubble Myth

Issue: July 2005

By Carl Steidtmann, chief economist and director, Consumer Business, Deloitte Research

"Everywhere you turn these days the buzz is about soaring real estate prices. If you are lucky enough to be a homeowner in one of the hot markets like South Florida or New York City, owning real estate is almost as good as winning the lottery."

"When you strip away all of the white noise around a housing bubble, what you find is a robust market for housing that is undergoing several profound changes all of which manifest themselves in higher home price indexes, none of which adds up to a housing price bubble."

This "expert" was describing the housing market in the U.S. in 2005 .

As we know the housing bubble burst in the U.S. and is about to become the worst housing bubble since the depression of 1929.

No comments: