Tuesday, January 16, 2007

Condominium markets collapse in major cities

The NY Times reports that demand for condos has collapsed under soaring inventories in Boston, Las Vegas and Washington, DC, but remains firm in New York City, but even there, prices are down 5%.

This is a natural reaction to years of soaring prices, and it was to be expected regardless of interest rates or the strength of the economy or stock market. A correction was inevitable, and the actions of home builders suggest that it's far from over.