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Housing Bubbles Are Fairly Rare Posted: 07 Feb 2011 04:24 AM PST “May you live in interesting times.” – Ancient Chinese Curse. The housing bubble and crash has been the story in real estate the past decade. From 2000 when there was a flight from the stock market to real estate through the bubble bursting in 2006 to the present malaise in the market, we have watched a historical period in the real estate industry. It has gone from euphoria to despair but it has been interesting. And rare. Robert Shiller, of Case-Shiller Report fame, had an article in the New York Times this past weekend talking about the historical significance of real estate bubbles in the United States. The combination of speculation and government intervention has been the significant factor of the such bubble burstings as the Panic of 1837 and the Panic of 1857. The last real estate bubble happened in the 1970s only to burst when the Federal Reserve clamped down on credit. To think that we are only in the second real real estate bubble in the past 140 years is amazing to think about. The question that Shiller did ask was how was consumer confidence in real estate effected? Here is that excerpt from the New York Times article:
So if you are a home owner or a real estate professional, remember this quote. “This too shall pass.” While it may be pithy it also is very true. We are going through a terrible time for the real estate industry but soon it will be over and people will be back buying homes and seeing appreciation, albeit at a lower appreciation rate that in the past decade. Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published. Housing Bubbles Are Fairly Rare Related posts:
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