Can't figure out which way housing prices are headed? Great news?neither can the Chairman of the Federal Reserve! Reports Bloomberg News,
"House price increases have outstripped gains in income and rents in recent years," Mr. Greenspan said in a letter to Senator Richard C. Shelby, Republican of Alabama, after the Fed chairman testified before the panel on July 20. While that "raises the possibility that real estate prices, at least in some markets, could be out of alignment with the fundamentals," Mr. Greenspan added, "that conclusion cannot be reached with any confidence."Next week's vacation can't come soon enough.
· Home Price Rises Hard to Track, Fed Chief Says [NYTimes]