And, then the Federal Reserve gives their "crystal ball" report
According to the Federal Reserve, "U.S. house prices are likely to grow at the slowest pace in more than three decades as interest rates climb and land prices take a tumble over the next three years".
This study appears to agree with many who feel that home prices have taken such a large jump in recent years, that the housing market simply can't continue to grow in such leaps and bounds. With the almost certain rise in interest rates (predicted to happen through 2005), many feel that the housing market is sure to cool off.
Many people are wondering if there is a chance of a market correction, as we saw in the early 1990's, with house prices dropping in a considerable amount. Remember, however, that while the prices declined, they also rebounded and grew even more!
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