Today's New York Times has the
latest (subscription may be required; you never know with the NYT, it seems) in what has been a deluge of media reports recently on housing prices, all of which pose the unanswerable question of whether there has been a housing bubble and, if so, whether it has burst. All this talk of slumps, soft landings, hard landings, busts, and crashes reminds me of the oft-heard line that a recession exists when your neighbor loses his job, but a depression occurs when you lose yours.
The same logic applies to house sales. I read these articles with the detached security of one who has seen his house value rise a good bit in the past two years and who does not expect to sell for a long time, so a downward trend is not something of concern. If I stand on my front steps, however, I can see six For Sale signs, each of which has been hanging for at least three months. The only thing moving, at least in my corner of the world, is the asking prices of these homes, some of which have decreased 5-8 percent in the past few weeks.
And, as all these articles note, where she stops, nobody knows.