I first started to hear the term “Housing Bubble” some 5 years ago…shortly after the so called ‘tech bubble burst.’
Bubble Heads always have predictions as to what’s going to be the ‘tipping point.’ I think it’s all so much speculation.
I’ve read some so called experts predict 25…even 75% decline in property values…I say, “they’re not experts at all, they’re sensationalists.”
I’ve always felt that when the new paradigm was over (and I think it is)–we’d see a cooling period w/perhaps some of the higher end homes loosing some equity. We’d see marketing times getting back to what’s traditionally been a norm (90-180 days). I also think we’ll see more options for borrowers coming from the lending community in the future.
Many areas of the country are currently entering what appears to be a transitional period. But than again…this is what has traditionally been the slow time of year for real estate sales (Oct-Jan).
Some regions will take longer to recover than others. Those will be the areas that have seen the greatest amount of speculation, and appreciation (Vegas, Orange County, areas of Florida…).
I prefer to react to markets…rather than predict them.
Areas that interest me currently are; Miami (still), Nashville, Boise, Pheonix, Seattle & Maui. There appears to still be a significant imbalance in supply vs. demand in these areas.
“I think that the “Housing Bubble” stories are coming from the stock market guys.”
I wouldn’t totally disagree with that assessment.
People got stung, and stung bad in the stock market. Bunch-o-dirty-SOB’s didn’t play fair & took investors to the cleaners.
People haven’t forgotten, and despite the fact economic indicators look favorable for areas of the stock market again…many investors haven’t gotten the taste out of their mouths yet.
I’ve also noticed PMI companies have jumped on the Bubble Bandwagon the last couple years–writing articles & making predications of which cities are at most risk. Could it be because, they’ve lost market share w/creative financing making the scene? Could it be because, they’re insuring riskier & riskier loans?