Housing: Is It a Bubble If It Doesn't Pop?

Consider that on July 22, the National Association of Realtors (NAR) and the National Association of Home Builders got together to put out a press release simply to refute the existence of a housing bubble. In it, they applauded Federal Reserve Board Chairman Alan Greenspan for telling Congress in recent testimony that the answer to the infamous "bubble question" is that "it is most unlikely."

different market in a lot of areas. NIMBY has caused isolated pockets of increases. Let's remember, we are all better off than we were ten years ago. Setback in RE does not equal crash on a nationwide scale. Please remember, DOTCOMS were SF, South Bay & Penin based. We lost market share 2+ years ago and it has returned + 10%. I would advise you to look at property (not your own home..thats for livin) as a serious investment. sometimes a fool has a good idea

Allow me to relate what is happening in Tulsa, Oklahoma. Because of ENRON like accounting practices in Williams Trading unit. Williams is near Bankrupt and fighting from the single digit stock value. Worldcom, another big bust. Williams Communication has gone under taking with it A LOT of local money with it. Phillips has moved its headquarters to Houston and most of the oil industry is treading water. There are so many big fancy houses for sale in this town, for sale yard signs are as common as mailboxes.

The local paper "The Tulsa Red World" after singing the praises of all these corporate giants and their generous payments to local charaties. Ran an article telling about all the "forgiven" loans the CEO's/Directors of these failed companies gave themselves before going broke. If the situation worsens you may see the first coroporate civil war start in the heartland. Guess which side the OK Gov't will take???

To summarize. If tempers are as hot elsewhere as in this town, there has been a large coverup of the news media, or should I say omission, of a problem that is terribly important to the "Little People".

I myself have lost 22 years worth of 401K savings in 12 months, and am not a happy camper. That fact might be self evident.

Hello... Knock, knock...is anybody in there?

There was another real estate bubble from the early 1990s to 1995+, force fed by the National Association of Realtors (NAR) whereby properties were being bought up by every idiot and their dogs expecting profits of at least 200% to five times the actual purchase price.

The "bubble of the 90s" was brought about by the bubble of the markets allowed by Bill Clinton , with no questioning of method or accounting by the Reno run InJustice Dept., as long as the markets ballooned while the Blow Job Boy was in the White House.

That crap rise of all the markets, internationally, has been proven to be, if you will, another "blow job"...

This real estate bubble crap is "misrepresentation" at the least and is a civil crime, and depending upon the circumstances, may be a criminal offense, depending upon how monies may be handled.

Real estate value does not rise and fall with the arrogance of the Congress and the caine snorting fools on the floor (oh, you didn't know that?).

If you are coerced into buying real estate now, whether it be a larger, more expensive home, a lot down the street, a time-share, or a "brand new lot on the Big Island of Hawaii with a view (which means it is a lot on a lava flow), tell the Broker or Realtor to "EFF OFF", unless you are in the business of buying and selling properties.

"CAVEAT EMPTOR", means do your homework and do it well.

If you do not feel comfortable with the Salesman, Realtor or Broker, regardless of what they say and if you are pressured by any means, especially with the "you have to act now to get the best deal on this exclusive offer...

Then you walk as fast as you can to get away from the shyster.

Leave your monies in the bank at 3-5%, at least you know where it is...

I live in an oil town too, Furr supermarket, Red Lobster, Dennys, Ruby Tuesdays,Office Max,Black Eyed Pea, Builder's Square, and 60 (I had to whack the CofC over the head to get the data) other business have closed in the last two years.

Houses unless they are at fire sale prices, sit on the market for months, otherwise things are peachy keen.

Oh yes, we have a new Starbucks with their over priced bad coffee opening soon.

Absolutely....the market really changes from region to region...."And in the fastest growing markets, such as metropolitan New York and Washington, D.C., prices grew 20% over the first quarter of last year. Home prices historically rise at the rate of inflation, now under 2%, plus a percentage point or two.

DC and NYC both suffered after 9-11...we experienced a five month stagnation in home sales....as soon as February hit...alot of people who needed to buy homes since September of 2001 converged with those numbers who normally buy houses in the Spring market. By June of this past year, the market was so hot here in DC that contracts were being written with escalating clauses that pushed up the prices. Some of this will now naturally slow down.
More importantly an issue that will only become more of a factor: older established areas suffer from a lack of land for development close to the urban centers...and a growing population. This demand will always grow where as the supply is finite.
So, is this a real bubble?...not in the 80's sense...and then again anyone who buys during a bubble will always make money if they're willing to hold on to the property for 8-10 years. The bubble bursts only on those who end up having to sell very quickly.

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