Harvard Study: Housing Market slowdown is merely a breather

The Joint Center for Housing Studies of Harvard University just issued their 2006 report on the nation's housing market. The conclusion is that cooling home sales won't last long because continuing strong household growth will fuel more housing demand. Over the next 10 years there will be at least 2 million more new households than were formed over the past decade. "On the strength of this growth alone, housing production should set records", the report says. Don't expect prices to plunge as a result of the current slowdown. Markets are neither seeing big employment drops nor overbuilding in housing supply - two conditions that precipitated price falls in the past.