The Federal Reserve's vice chairman, Donal Kohn, recently said that he sees no imminent housing crash happening. He explains that it is a market that was in need of finding a balance and is now being corrected. He goes on to say that it was a market that got very hot for too long and is now in the process of normalizing. Kohn then says that some home sellers have still not accepted this fact and they must realize that they need to lower asking prices in order to make a sale.
Kohn thinks that the housing market may in closer to its bottom than to it apex, which means, that we may be on our way to hitting bottom and then eventually return to a positive housing market, igniting new home start and resales.
Mike Moran who is the chief economist of Wall Street's Daiwa Securities America states that the financial press & TV are portraying the market as a catastrophe and dramatizing the cyclical nature of it. Moran says that the market is being corrected and that it was in dire need of happening, but he says that it can be, "orderly or disorderly" and goes on to say that all signs are pointing to an "orderly process" and does not show signs of a bust.
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