ARE WE LOSING ALTITUDE TOO FAST?

AS GREENSPAN'S INTEREST-RATE HIKES TAKE HOLD, SOME FORECASTERS FRET ABOUT LANDING IN A RECESSION

All the conventional rules of timing and location should make Barry Rutenberg's profitable homebuilding business especially robust these days. His Gainesville, Florida, company is in one of the fastest-growing parts of the fast-growing Southeast, and the spring buying season is under way. Money is easy: fixed-rate mortgages have fallen to 8.2% for a 30-year loan. But fewer people are poking through his developments, and Rutenberg recently sold a home for $208,000, at a loss of $24,000. "This was the first time I had to sell a home below cost this decade," he says.

If Rutenberg is taken aback, it is because...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!