Housing Bubble, What Housing Bubble?

     Instead of worrying about the burst of the “housing bubble” you might as well watch paint dry or your grass grow. CNN’s “American Morning” is no longer forecasting doom and gloom for the US housing market. On July 21 Gerri Willis declared the latest housing market news “kinda boring.”

     Willis’s statement was in contrast to comments made earlier this year on American Morning. On March 22, Soledad O’Brien said “If you are worried about the housing bubble bursting, sell, sell, sell, it’s a sellers market. We’ve got some tips on how you can get your money out of the market right now.” So though it may have “come as no surprise to home owners” it certainly should have been a surprise to CNN that Federal Reserve Chairman Ben Bernanke said the slowing housing market is coming in for a safe landing.

     On the July 21 edition of American Morning in response to a report on Bernanke’s comments, anchor Miles O’Brien laughingly suggested that Bernanke wasn’t “going out on a limb.” Bernanke’s comments were characterized as “kinda boring, like watching grass grow.” “Home owners it comes as no surprise to you,” Willis concluded. The term “housing bubble” was not mentioned.

     The Business & Media Institute has previously documented CNN’s emphasis of the “housing bubble.” In December 2004, Kitty Pilgrim discussed signs of weakness in the real estate market. She stated, “New home sales fell 12 percent last month. And that was the biggest decline in nearly 11 years. The new home sales report is the second in a week, signaling a possible slow down. Last week housing starts posted the biggest decline in 11 years.” That November 2004 report ended up being an anomaly, and real estate sales continued strong in the months that followed, as did the economy.