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What Will The End Of The Housing Boom Look Like?

Posted by: Chris Steins
Thanks to: Chris Steins
29 August 2005 - 11:00am

When America's housing boom ends, it will end gradually, not like the stock market, says a Harvard scholar.

"Unlike stock prices, the housing market can't collapse in a few days. People can dump their stocks almost instantly, but it often takes months to sell a house.

In past housing busts in California, New England and elsewhere, many owners who couldn't get what they considered a reasonable price yanked their houses off the market. The number of transactions plunged but prices fell only gradually, often over several years."

[Editor's note: The link below is available to non-subscribers for 5 days.]

Full Story: How Will Home Boom End?
Source: Wall St. Journal, August 27, 2005
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The decision to abandon a property is a symptom of the loss of confidence. And while abandonment certainly affects confidence among surrounding homeowners, the most important question to answer is not "how do we deal with abandoned properties?" but "what is the most cost-effective way to restore market confidence, and how do abandoned properties fit into that picture?"
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