Most People Should Not Fear Housing Bubble

By: David Leonhardt: REALTOR® Magazine Online
As baseball legend Yogi Berra once said, “It’s déjà vu all over again.”

In the 1990s, inflation-adjusted real estate prices dropped almost a third in New York City. The fall was worse in Los Angles and nearly as bad in Boston, San Francisco, and Washington, D.C.

Most of us never noticed. If anything, the drop in prices allowed a lot of families to buy their first home or trade up to one that they never could have afforded in the 1980s.

'”Even in the most vulnerable markets, most people just have to look through it and ignore it,” says Mark Zandi, the chief economist of Moody's Economy.com, “because it's of very little relevance to them."