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Some folks are still missing the $8 trillion housing bubble and Robert Samuelson seems to be one of them. In reviewing the housing market it is important to notice that there is a very different story by regions. In many areas (e.g. Las Vegas and Phoenix), bubbles have fully deflated and we should look for house prices to stabilize and even rise some in the years ahead. In other areas, like Los Angeles and Boston, there is likely still some air in the bubble. In these markets, prices are likely to fall in the years ahead. This can be seen as a good thing, since it will make homes more affordable for new buyers.

It would be foolish to envision a single national housing market since different regions have very different dynamics. As a result, it would be very wrong-headed to try to design a single policy — for example promoting higher prices — for the nation as a whole.