Real Estate Bubble

Great video: http://www.youtube.com/watch?v=UfR_gPzTMnk

Chuck Woolery's house just got foreclosed. I'm not sure if that's true but I bet it is. Seriously, even though foreclosures are high, mortgage rates are low, and there are good several options for first time home buyers. However, as a fairly transient renter....well, I rent, so it doesn't really apply :)

I don't foresee another real estate crisis, with 50-60% drops in values. Commercial real estate has been impacted by business failures, but the bubble there is not as big as it was in housing. However that doesn't mean that we're completely out of the woods just yet. Just yesterday, we received news that new home sales are down 33%, this after the government pulled its new homebuyer credit. This suggests that the market cannot stand on its own without government help. http://www.bloomberg.com/news/2010-06-23/u-s-stocks-extend-decline-after-new-home-sales-fall-to-lowest-on-record.html The RE market isn't going to improve anytime soon. In order for there to be any type of real growth in that market, we're going to need to see an improvement in the employment picture. There is no such thing as a "jobless recovery". If people aren't fully employed, they aren't spending as much, bottom line. Much of the GDP growth can be attributed to money printing and other forms of stimulus. W... Read more