The Data Say the Housing Market Is Not in Poor Shape

A Morning Edition segment on the Fed's likely actions included a comment from Karen Dynan, the co-director of economic studies at the Brookings Institution saying:

"our housing market remains in very poor shape. It may have turned the corner, but conditions still look pretty bleak."

Actually house prices are pretty much back on their long-term trend path. The current sales rate is also at or above its trend level. It is true that house prices are still well below their bubble peaks, but that...