HOUSING BUBBLE UPDATE….The supply of homes on the market is up by a third over the past 12 months, existing homes aren’t selling, and prices are dropping. The glut of unsold homes is the highest since 1993 and the year-over-year price decline is the biggest since 1990. Here are a few reactions:

Joel Naroff, Naroff Economic Advisors: “Pop goes the housing bubble.”

Ian Shepherdson, High Frequency Economics: “With inventory still rising, there is no chance of any short-term relief. Prices and volumes have a long way to fall yet.”

Thomas Lawler, former economist at Fannie Mae: “You’ve got a ways to go. You still have affordability issues in a lot of markets.”

David Lereah, National Association of Realtors: “This is the price correction we’ve been expecting ? with sales stabilizing, we should go back to positive price growth early next year.”

Question: Can you tell which of these guys is living in a dreamworld?