There is NO real estate “bubble.” The slowdown appears to be psychology oriented and has been egged on by constant articles and comments in the press. The reports are greatly exaggerated and inflammatory and designed to cause trepidation amongst consumers. It is a known fact, that negative news sells many more papers and garners more attention than positive news.
Consider the following facts: Appreciation rates are slowing but not declining. That means prices in most of our market areas will continue to climb but at a more gradual pace than in previous years. The economy is healthy in our area and is generating jobs. This leads to continued demand for real estate. ...
The fundamentals leading to a continued vigorous real estate market are strong. There are 78 million baby boomers. Single women are the single largest growing segment of our population and they buy more real estate than other segments of the population. There is still a high rate of immigration and as many as 25-30% of houses purchased are purchased by someone not born in the U.S.
So, in contrast with the past few years, housing is slower, but market fundamentals are still very strong.
Friday, October 17, 2008
Flashback 2006: Realtor Marlene Goldberg said no bubble
Two years ago today, Realtor Marlene Goldberg chose to shoot the messenger for "exaggerated and inflammatory" bad news about the housing market: