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The bursting of the condo bubble
Condominium sales in some pretty significant real estate markets are falling quickly. The question on people's minds is whether it signals a more general trend towards the bursting - or, at the very least, the substantial deflation - of the alleged housing bubble. Given the widespread of use of high-risk adjustable rate financing instruments and the rising prime rate, there is reason to be concerned. If there is a bubble and it does burst, how will the main stakeholders (borrowers, lenders, and policymakers) react?
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didn't this bubble already busy? Or if not burst, then deflate like a tire with a slow leak. Sure seems that way here in Florida where real estate sales are moving with the speed of a pre-global warming glacier. Are there still areas of the country where home prices are soaring and they sell as soon as the For Sale sign goes up?
January 16, 2007 9:31 AM | Reply | Permalink
The market is still OK here in the greater Seattle area, with prices still firm to rising a bit.
January 18, 2007 3:26 PM | Reply | Permalink