Q&A with a man who gave an early warning
Dean Baker, an economist who back in 2002 warned that the housing market was caught in a bubble, chatted with me recently for a Q&A. The results are in the Ideas section today -- you can read it HERE.
Here's his answer to the question, Do you think now is a good time to buy a home?
Across the Midwest, the South, upstate New York, you can find lots of places where housing looks pretty reasonably priced, isn't much different than it was 10 years ago. But places like the D.C. area, New York, Boston, it's hard for me to see that those prices don't still have a long way down to go.
What about the Baltimore area?
Baltimore didn't have as much of a run-up as D.C., but it did have one. My expectation is you're going to see a lot of that, if not all of that, eliminated. ... Prices won't fall back to where they were in the '90s, even adjusting for inflation. They'll probably stay higher. But they'll certainly come down from their peak in '06.