Housing.com News, Analysis & Opinion: Housing Market: Crying Wolf

Although no official word has come from Helicopter Ben and company as of yet, word has it that the Federal Reserve may put a halt on increased interest rates....and then again, perhaps they won't. This whole schema for the CPI is ridiculous, I might add...the two most serious cost inflation areas right now are gas prices and food costs (due to higher gas prices themselves), and yet they're not counted because they're "too volatile." Yeah, because that Gap V-neck T-shirt is the deal-breaker that's keeping me from filling up my $50 a tank SUV.

Here's a line that's worth noting: Fed officials are counting on a slowing U.S. housing market to keep the economy from overheating -- and there have been numerous signs a long housing boom is simmering down.

I saw it commented somewhere that the Fed's rate-hike marathon is designed to pop the bubble gently, not abruptly, and then turn around and crow about how we didn't need to provide new public works or government jobs to combat wage stagnation and price explosions. Interesting theory, to say the least.

Peep the discussion about the perfect housing storm over at the Daily KOS. As one commenter put it, the change will happen slowly. There's probably not going to be any single massive trigger that suddenly makes nationwide housing prices drop like Kirstie Alley's dress size. But as long as short-term-minded developers keep churning out hyper-expensive McMansions, prices will have to drop in the long run, because eventually, there will simply be too much inventory to make value of anything.

(I wish I'd had a picture of Wolf Blitzer I could've used for this, 'cause that would've just been great. :) )

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A news header on CNN this morning read "Crying Wolf About Housing?" Interestingly, CNN's own financial reporting seems to show that Grandma may, indeed, have something to worry about. MSNBC has a more thorough roundup of the state of the market. Although no official word has come from Helicopter Ben and company as of yet, word has it that the Federal Reserve may put a halt on increased interest rates....and then again, perhaps they won't. This whole schema for the CPI is ridiculous, I might add...the two most serious cost inflation areas right now are gas prices and food costs (due to higher gas prices themselves), and yet they're not counted because they're "too volatile." Yeah, because that Gap V-neck T-shirt is the deal-breaker that's keeping me from filling up my $50 a tank SUV. Here's a line that's worth noting: Fed officials are counting on a slowing U.S. housing market to keep the economy from overheating -- and there have been numerous signs a long housing boom is simmering down. I saw it commented somewhere that the Fed's rate-hike marathon is designed to pop the bubble gently, not abruptly, and then turn around and crow about how we didn't need to provide new public works or government jobs to combat wage stagnation and price explosions. Interesting theory, to say the least. Peep the discussion about the perfect housing storm over at the Daily KOS. As one commenter put it, the change will happen slowly. There's probably not going to be any single massive trigger that suddenly makes nationwide housing prices drop like Kirstie Alley's dress size. But as long as short-term-minded developers keep churning out hyper-expensive McMansions, prices will have to drop in the long run, because eventually, there will simply be too much inventory to make value of anything. I've been wrong before, but will I be this time? YOU MAKE THE CALL! (I wish I'd had a picture of Wolf Blitzer I could've used for this, 'cause that would've just been great. :) )