According to an article at the Boston Globe, only 17 percent of all housing booms have ended up in busts (FDC source). It goes on to talk about how in this market there are so many investors buying property with no intention of occupying it themselves or with renters – speculation has driven the market. In addition, they discuss all the new mortgage products being introduced as a lead to further real estate speculation.
I just find it so interesting thinking about how insane growth in the housing market looks like the insane growth in the stock market in the late 90’s. I heed caution, and ride the wave with a smile.
Invest wisely . . .
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Joshua DorkinJoshua has written 539 articles for us.
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BiggerPockets.com was founded by Joshua Reed Dorkin in August 2004. An entrepreneur, web designer, real estate investor, and one-time realtor, Joshua was not satisfied by the online offerings of other real estate sites out there, and decided to build one himself. Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
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The question now is: what will be the next big boom? We have had the technology and stock boom that ended in 1999 as money was moved from the volotile stock marketing and into real estate. Now that the real estate boom is over, what new vehicle will draw all of the money. Where will the next boom be?
-BN at 4MySales.com