David Lereah's Recent Statements

David Lereah, chief economist of the National Association of Realtors® recently said ( as reported by the Chattanoogan):

"In examining the hottest markets for home price appreciation, we see a rolling boom moving from one metro area to another over time, as well as a spillover effect into nearby areas with lower home prices”

“That is spreading the wealth of housing returns, with a natural easing of appreciation in areas following a period of extraordinary price growth. Even after slowing in a given area, prices typically have continued to rise faster than historic norms."

David Lereah is correct about the idea of a 'rolling boom. After this unprecedented housing bubble there will be significant price declines in the bubble markets. The soft landing scenario is not in the cards. A 20 - 30% inflation adjusted price declines will occur in most of the bubble markets.