OTB: Was There a Housing Bubble?
Survey says?!?!
No -- and I am inclined to agree. The "housing bubble" as it stands is by and large manufactured disarray. Hedge fund managers are making a killing, those with capital are hosing those without monetary assets, and housing prices have not declined... in fact, they are stablizing.
I do get the feeling this will be a cyclical arrangement... the next wave of housing purchases will not be so wild as the previous decade, but rest assured that folks will be getting back into the swing of things -- predictably by the end of the year.
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Anne42pt2 
1 Comments:
Sometimes, crazy things happened in the housing market. Some people were loaned money who never should have been loaned money. There were overly aggressive and occasionally unscrupulous lenders out there luring these people in. Some consumers over-borrowed or borrowed very foolishly vis-a-vis what they could actually afford. So we started hearing about the return of a buyer's market and an increase in the number of foreclosures.
As to a housing market correction: What goes up, must come down and after the expansion, the contraction almost inevitably follows. A seller's market will become a buyer's market in time, just as a buyer's market will revert to a seller's market eventually. And prices will go up and go down as well.
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