Credit Crisis: The Sky is not Falling - Brookings Institution

Credit Crisis: The Sky is not Falling - Brookings Institution

This paper was published recently on the mortgage, credit and housing "crisis" we are all hearing about in the major U.S. media outlets. Coming from such a respected source, it is important that people who try to be informed about housing and financial issues read and have an understanding of what is being said here. In fact, I still need a few more reads through it before I can glean enough information to fully process what has been written.

Take a look and combine it with information that is starting to come out which indicates that 2008 could be a turn-around year in certain housing markets. At the end of the day, what matters is your comfort level in investing a minimum of a quarter of a million dollars (and that's the bare bare minimum here in Brookline). Like every "market" we can look at supply and demand figures. As far as I know there are very few if any "new" homes being built anywhere in Brookline. Therefore the available supply will always be capped. The demand (buyer pool) is pretty consistent as well. Medical Residents will always move in for short-term (2-5 year) stays and the academic community will always provide a constantly regenerating pool of consumers interested in living here. Therefore, while markets will ebb and flow, Brookline will be a more stable investment than almost any other community. These factors will not change which should be comforting to all who are currently invested here.