Self-fulfilling prophesy?

With millions of Americans still eager to get into the housing bonanza, it’s no wonder signs of overheating are popping up. At building sites from Florida to California, househunters stand in line just for the chance to buy a home.

…In the last big housing recession, in the early 1990s, starts plunged 12.9% in 1990 and 16.2% more in 1991…. And for all the media attention and party chatter about a bubble, there’s little evidence that the national housing market is super-inflated.

…In spite of the fact that the housing experts have been predicting the “bubble” to burst for a couple of years now…. In my opinion, the “bubble” will not “pop” anytime
soon.

…Long, informative article is here at the at the Businessweek website, worth reading in its entirety.

With millions of Americans still eager to
get into the housing bonanza, it’s no wonder signs of overheating are popping
up. At building sites from Florida to California, househunters stand in line
just for the chance to buy a home. Investors are flipping properties almost
overnight.

Personally, I am glad
that our regional market is not close to this
craziness.

Still, the pain won’t
be as bad as in previous slowdowns. In the last big housing recession, in the
early 1990s, starts plunged 12.9% in 1990 and 16.2% more in 1991. That’s not in
today’s forecast. And for all the media attention and party chatter about a
bubble, there’s little evidence that the national housing market is
superinflated.

This is good news.
In spite of the fact that the housing experts have been predicting the “bubble”
to burst for a couple of years now. Now that rates are beginning to inch up,
perhaps there will be a leveling off of prices. In my opinion, the “bubble” will
not “pop” anytime soon. We shall
see.

Long, informative article is
here at the at the Businessweek website, worth reading in
its entirety.

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