Housing Prices To Stagnate For Years, Economists Predict

[The Masked Tulip]

The nation's long housing boom will end not with a bang, but in a prolonged period of whimpering as homeowners suffer through stagnant pricing that could last years.

That was the consensus of economists gathered in Chicago as they viewed the likelihood that a so-called housing bubble will end in a crash.

Their conclusion: It won't.

"Price increases have far outstripped income growth for a long time, particularly in the last two years, but that period is coming to an end," he said.

The so-called golden age for mortgage lending is about over after lasting about 20 years, he said.

"The end of the boom probably is not far away," Brown said. "It likely will lead to a long period of price stagnation but not technically a bust."

Full article:

Housing Prices to Stagnate For Years, Economists Predict

[foxytrader]

Full article:

Housing Prices to Stagnate For Years, Economists Predict

Highly amusing to see them using the UKs cycle as reason for their market not to tank.

At least it shows that the VIs on both sides of the pond are operating with bare cupboards.

How much longer will people swallow "it won't go down because we say it won't"?

"Economists" was a slightly generous description for some mortgage brokers and a housebuilder too.