Alphonso Jackson on Budget & Economy Secretary of H.U.D.

Housing bubble will not cause radical price drops

A: It’s no surprise that housing prices have increased so dramatically in some areas of the country. We’ve seen significant job growth over the past few years, and interest rates have remained historically low. Nonetheless, the rise in housing prices has been very regional in nature - mainly confined to major cities and coastal areas. In many markets, particularly in the Midwest and Southwest, people can still find homes with prices that haven’t risen so dramatically in the past few years. With that said, housing prices may continue to rise in the hottest markets. But when things settle, I suspect that prices will level off - they won’t suddenly and radically drop.