Fear of Falling

Everybody from Los Angeles to Boston is puzzling over which way the nation's real estate market is headed. It's a debate that's been raging for years. Those who sounded the alarm early looked like a bunch of Chicken Littles. Now signs are flashing everywhere that those chickens may be coming home to roost. It's unlikely that the housing market will come to a screeching halt. Mortgage rates, while rising, remain near their historically low levels, and the economy is strong by a number of measures. But the days of the equity-crazed suburban real estate mogul seem to be coming to an end. For homeowners, prospective homeowners, and anyone invested in real estate-indeed, anyone with a stake in what has unquestionably been a real estate-fueled domestic economy in recent years-understanding the risks and opportunities in the residential housing market is critical.