So this is the much-feared "housing bust"? Bust Lite is more like it. Existing-home prices are as high as they were a year ago, while sales have receded only to 2003 levels. The only extreme decline is in construction: Builders are trying to get rid of the houses they've already built before they put up more. The overhang of unsold homes could be back to normal by around midyear.

Read the full article written by Peter Coy from BusinessWeek, HERE.

Low rates are a major factor

There's a related article in the same February 19, 2007 issue of BusinessWeek, entitled, "It's a Low, Low, Low, Low-Rate World," written by Michael Mandel and David Henry, that support "the surprise that low rates are still keeping the floor under housing."

Money is cheap. And some experts say it could stay that way for years. That's creating opportunity—and brand new risks

Labels: Bay Area Real Estate, BusinessWeek, Housing Bust, Interest Rate, Low Rate, Real Estate Cycles