Bubble or Froth

Well, it does look like the trend in home prices is softening a bit, but it's too early to tell if the bottom is about to fall out or if the descent will be tolerable. In any case, some homeowners are bound to get burned and the horror stories are already accumulating. Yet, the economy is still expanding and mortgage rates are still low by historical standards.

In the longer view, analysts note that the trend in the number of people who traditionally are first-time homebuyers is on the rise. According to Census Department population projections, the number of people between the ages of 28 through 32 will be 11.0% higher by 2011 and 13.7% higher in 2016.