The former Fed chairman Alan Greenspan stated in a recent interview that “prices are going to fall much lower yet”. He states that the excess supply of homes will drive prices down.We here in Orlando have an excess supply that is greater than most other cities so if you assume Mr. Greenspan is correct, and he’s been right about an awful lot, then we should see a greater decline in prices as well.Greenspan blames the low interest rates the past 15 years for the speculative boom in housing. People don’t decide to buy when the rate of appreciation of homes are great but when the interest rates are low. He said that he tried to get it under control in 2004 and 2005 by raising interest rates but failed to get the speculation under control.Here is the link to the Reuters Coverage of Greenspan’s Interview.
Greenspan Says Housing Prices are Going to Fall Much Lower
September 21st, 2007 · 1 Comment
Tags: Market Forecast