The head of the U.S. Central Bank says home prices could fall as the nation's booming housing market inevitably slows down.
Federal Reserve Chairman Alan Greenspan made the comment Saturday during concluding remarks at an economic summit in the western state of Wyoming. He said that as the housing boom simmers down, home price increases will slow and that prices could even decrease.
One day earlier, Mr. Greenspan warned Americans not to assume that recent soaring home prices will continue forever. He said increased buying power fueled by higher home prices could disappear if investors become cautious.
Large numbers of U.S. homeowners have taken out loans against the increased value of their homes to pay for renovations and other purchases, fueling much of the recent growth in the economy.
Some information for this report provided by AP and AFP.
