"Remember the report last week that keyword prices relating to mortgages had dropped? Well, real estate sites themselves didn't see a drop in traffic. Hitwise has posted stats today showing how visits to US real estate sites have remained strong since climbing high earlier this year. It also charted a spike last month for searches on the terms "real estate bubble" and "housing bubble." So perhaps the interest in real estate remains strong, but no one's wanted to plunk down for a mortgage as much." (From SearchEngineWatch)
As noted earlier in this blog, public awareness of the bubble has grown tremendously in the last two months. This is just one more way to confirm the vastly increased awareness.
Now on to collecting evidence that housing appreciation rates are slowing. Stagnation here we come.
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What's wrong with stagnation? If prices remain flat, does that hurt anyone other than speculators?
ReplyDeleteStagnation is just a stepping stone that leads to price declines in this case. Americans are so speculative. It happened in the dot com era and is happening with housing now. Apparently, people have not learned their lesson.
ReplyDeleteThe long term economy is being distorted and weakened due to the dot com bubble and now due to the housing bubble.
For those who still think that a soft-landing is possible:
ReplyDeleteSustained stagnation at high P/E ratio is a near impossibility. High P/E entails a high premium for expected future appreciation. Stagnation means low actual appreciation. Expectations are usually re-aligned quickly once reality shows otherwise. This appreciation premium will be gone and prices will come crashing down.