There’s a story making the rounds which suggests, quite convincingly, that the nation’s housing market is on the brink of collapse and that, by implication, the kitchen and bath market may well follow.

Popular in the mainstream press, the story has shaped widespread perceptions about the market that ring hollow in the face of both history and the facts . . . to say nothing about logic.

And it’s something that should be kept in mind as 2008 gets underway in earnest this month.

Clearly, the housing market has witnessed a steep reversal of its recent boom (see Forecast 2008). New construction and home sales are down significantly. Cash-out refinancing activity has declined. The inventory of unsold homes has risen. Consumer spending and home improvement product sales have slowed.

But this is where the hysteria begins – along with the obvious disconnect between media coverage and the facts.