Monday, August 29, 2005

Alan Greenspan warns of potential housing market crash

At a speech in Wyoming, the chairman of the Federal Reserve Board, Alan Greenspan, warned that the housing market could suffer from a serious crash. He warned of people buying houses as a "one-way bet" on making money. Greenspan mentions that "history has not dealt well with investors who ignore risks."

The article, from the (London) Times mentions that over a third of US housing markets are overpriced. I don't own a home, but sometimes, I wish I had bought one three years ago when I moved to Iowa City. This market has grown rapidly during that time and I probably would have seen a nice appreciation. At this point, though, if prices do fall or flatten, I might be better off. We'll see.

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