HOUSING BUBBLE NEWS….James Joyner comments on the housing bubble in the Washington DC area:

Our current house sold for about 87% of what it likely would have sold for one year ago?but 140% of what my wife paid for it a little over three years ago. Conversely, our new house sold for 79% of what it would likely have garnered a year ago, but 238% more than the owners paid ten years ago.

Oddly enough, James uses this as evidence that “the market is softer than it once was but hardly plummeting.” Really? His house (he says) has dropped in value 13% since last year and the house he moved to had dropped 21%. In my book, that’s a fairly dramatic bubble bursting, especially since pretty much everyone thinks the housing downturn has only barely gotten started.

I hope James is wrong in his estimates. If housing prices in the DC suburbs have already dropped 15% with worse yet to come ? thanks to the ARMs he’s a fan of because “most people will sell their home and move well before the rates become variable or they?re forced to refinance” (!) ? the end of the bubble could be worse than I’ve suspected.