As usual, Barry Ritholtz is right on the money when it comes to the credit crisis:
– From 2003 to 2006, Real Estate was driving the economy;
– Housing wasn’t a “true” bubble; Rather, credit was a massive bubble;
– Inventory has continued to build throughout the downturn, delaying any housing bottom;
– High quality homes in good locations priced appropriately are still good sellers;
– As Mortgage Equity Withdrawal (MEW) slowed, consumer spending would also slow;
– A 35% correction in prices, from the highs, was possible.
Greg Palmer 