For those interested in what the future of the housing market might hold, there's an interesting debate on the subject going on today.
Alex Tarrabok started the discussion with a post that tried to downplay all the talk of a bubble. Never mind this NYT chart - there's not nearly so much to worry about as some might think.
Paul Krugman then provided some interesting counter-evidence here.
But for my money, this response from Kevin Drum is most likely true. As is Kevin's wont, strikes a balance between the two and lands somewhere in the middle. Most likely we've got both a bubble and a new price equilibrium. The key question is what the new equilibrium level is. The closer it is to the previous equilibrium, the harder will be our fall.
Either way, expect the next 12-24 months to be brutal. If I were planning on buying a house, I'd probably start looking in late 2009 or early 2010.
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