Harvard: slowdown is merely a breather

Cooling home sales nationwide won't last long because continuing strong household growth will fuel more housing demand, Harvard University's Joint Center for Housing Studies says. 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, either. Markets are seeing neither big employment drops nor overuilding in housing supply --two conditions that precipitated price falls in the past.

Source: Realtor Magazine