Housing boom shows signs of finally waning

The CS Moniter reports:

On a national basis, it remains to be seen how home prices will be affected. Since the boom began in 2000, prices are up 52 percent nationally. In October, the National Association of Realtors reported that the median home price came in at $218,000, up almost 17 percent from a year ago. Housing prices have not declined nationally since the 1930s.

"I would be surprised if we saw big national housing-price declines," says Jan Hatzius, an economist at Goldman Sachs in New York. "But we could see close to zero increases next year."

In some of the hottest markets, these changes are already taking place. Properties in New York - especially luxury properties - are sitting on the market for a much longer time. And prices, instead of being bid up, are coming down. Some reductions have been $100,000 or more.

Karla Saladino, an owner of SDB Residential in midtown Manhattan, says they've had one $1.8 million property on the market for several weeks. "Last year, an identical unit sold almost immediately," she says.

Do you really think housing prices are going to go up 50% from here?