What Housing Bubble?

There is a ton of talk right now about the coming burst of the housing bubble.
People are convinced that all of a sudden we are going to see a dramatic drop in home prices.
As a country as a whole we have never seen a year where home prices have gone down on a national basis. Read that again, after you think of all the times we have had recessions, 18% interest rates on mortgages, and the high flying of the 80's among many others. Never as a country have home prices as a whole gone down during a year. This is not to say that there have not been pockets where corrections occurred, this is not to say that certain property types (i.e. condos) have not corrected. Let's now also look at where prices were in the early 90's and where they are today on the same property. The early 90's would be the calm after our most recent run up in values before the past few years. I'll bet that same house is selling for at least 2 times what it sold for the in the height of the late 80's boom, and maybe many times more than that.

I am not an economist, I am not a fortune teller, Could such a decline really be in store? LetÂ’s look at the facts. Let's read an article from someone who is qualified to speak on the subject - Sue Woodard, vice president, and Barry Habib, CEO, Mortgage Market Guide. The Scotsman Guide is the leading source of news for mortgage professionals, and I offer this link to a recent article by Sue and Barry in the Scotsman Guide. http://www.scotsmanguide.com/default.asp?ID=185&part=1