There are a huge number of bubble markets across the USA. What is a bubble market?
A bubble market is any area where residential real estate prices will decline more then 20% or more in real dollars [inflation adjusted] over the course of 3 years. In most bubble markets, the peak price was reached in late summer of 2005.
Many bubble markets will experience real price declines much greater then 20%. Some may experience price declines of 60% in real dollars over the course of 3 years. As learned from real estate history, some bubble markets may keep on declining for more then 3 years.
[This is a slightly revised post which was posted back on Nov 26, 2005]
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There is a great chart of rising DC housing inventory over at:
ReplyDeletehttp://overpriceddc.blogspot.com
However, while inventory is up, prices are if anything rising. Any views why?
Eric the Read
David! I think I've figured it out! Soda causes bubbles. :)
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