The changing housing market: A bang or a whimper?
New England Public Policy Center Policy Brief 06-4
by Karl E. Case
After an extraordinary 15-year run in terms of prices, sales of existing homes, and new construction, the U.S. housing market began to turn distinctly downward in early 2006. The first in a series of NEPPC policy briefs on housing, this brief helps understand why the market has shifted from hot to, at a minimum, cool. The brief recaps some of the factors that contributed to this housing run, such as demographics, a very liquid mortgage market, investment choices, foreign demand, supply restrictions, and market psychology and expectations. It also discusses several the factors that will determine how long and steep this reversal of housing fortune might be.
Stay Connected
NEPPC Links