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Bubble-Metrics: Economists Handicap Housing Markets





Sometimes, it's better to leave these "experts" alone.

From Wall Street Journal:

Spurred on by the growing concern that America's housing market is heading for a crash, a number of top economists are producing lists that rank the metropolitan areas most likely to experience a sharp drop in housing prices. The problem is that these studies, which look at factors from local income to lending practices, come to strikingly different conclusions. Even so, the raft of data can provide useful clues for home buyers and investors wary of getting in at the top.

Economists at PMI Mortgage Insurance Co., a unit of PMI Group Inc., for instance, recently calculated that the Boston area faces the greatest risk of a drop in housing prices among 50 U.S. cities they analyzed. But Boston doesn't even make the top 10 in lists of potentially overpriced markets compiled by researchers at mortgage lender National City Corp. and investment bank Credit Suisse First Boston, a unit of Credit Suisse Group.

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