What happens if there is a bubble?

RealEstateJournal | Sales Trends:
Five years ago, the bull market for stocks came crashing to a halt after a glorious run. Now, many worry that the roaring housing market may be headed for a train wreck as well.
What’s the likelihood this could happen? For his part, Federal Reserve chairman Alan Greenspan said last week that a nationwide housing bubble was improbable, while warning of “froth in some local markets.” He said a broad price decline in the housing market was unlikely to happen or to have much economic impact.
It is all good and well to continually predict that there is a bubble; eventually, some of these so-called experts will be right, whether it takes them 10 years of the same prediction will remain to be seen. For the Charlottesville-area market, I do not see a bubble. People keep coming here! Rates remain low and we are in a market that is desirable. This combination leads to a hot, Seller’s market, for better or worse.

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