Local Housing Market 3/16/07

Despite all the bad news in the media regarding the problems with subprime mortgages, prices in bergen county remain high. The one exception being high end homes, where prices have definitely taken a hit. I believe prices have remained high because we are in the fall-out area of Wall Street money. The "talk" has definitely changed. Previously bullish people are definitely concerned about housing prices. We will see if the subprime defaults lead to a "contagion" in the rest of the credit markets. I still can not believe that the Fed will not lower rates if prices start falling significantly. Time will tell!