Effects of the End of the Housing Boom

Allen Greenspan said, in an article dated August 27 of 2005, that the housing boom will end inevitably and that this end will be a major issue for Greenspan's successor in the future. Home prices have been increasing dramatically in recent years: the average home price has increased 50.5 percent over the past five years. An end to the housing boom would directly affect construction companies and a number of other businesses, but would also have an effect on the economy as a whole. However, Greenspan says that an end to the boom could have some positive effects on the economy. These positive effects include an increase in personal savings rates and a decline in imports.

What kind of effect will the end of the housing boom have on the economy? Will it have a negative effect on the economy in the future, or will the economy be able to recover?