The Upcoming Housing Boom

The median price of an existing single-family home rose to $208,500 from $183,500 a year earlier, the National Association of Realtors reported yesterday. It was biggest jump since a 15.3 percent gain in the third quarter of 1979. Sales of existing houses and condominiums gained 4.6 percent to an annualized pace of 7.22 million units, the highest ever.

"The continuing shortages of housing inventory are driving the price gains," David Lereah, the group's chief economist, said in the report. "There is no evidence of bubbles popping."


People are always stupid at the peaks and trough. What is David saying now?