Harvard Releases 2006 State of the Nation's Housing Report

Harvard’s current State of the Nation’s Housing report shows that even with interest rates rising and investor activity slowing the  real estate market is not in for any big surprises this year.

As long as there are new jobs being created and builders reduce production to match the slowing demand for homes, housing prices will keep climbing according to the report.

Historically, significant housing price decreases seldom occur unless there is severe overbuilding, major job losses in an area, or a combination of overbuilding and modest job losses. Fortunately, the study was unable to find these factors in any of the major metropolitan areas throughout the United States.

The bottom line is that although housing price increases will likely be more moderate in many areas, sharp drops in housing prices are unlikely anytime soon.

So, Chicken Little, the sky is NOT falling!

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