The stagnation period that was the norm in most bubble markets is no longer the norm. Small price declines are now the norm in the bubble markets. The housing boom will go bust in 2006. Price declines in most bubble markets are expected to be between 3 - 10% ( inflation adjusted) in 2006. The smart money has already exited.
There will be much pain for those who are inevitably going to be losing money. In every speculative episode those holding the bag will get burned. It won't be pretty. The housing bust has started.
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