New Bubble
As an old pro with almost 50 years of personal experience and learned real estate investing and developing from my grandfather and father, I am of the opinion a new real estate and credit bubble is being created just like the one from which the market is trying to emerge.
In 2003, I noticed the real estate bubble being created by the then real estate agents and investment amateurs and predicted a major correction. Real estate agents laughed at the suggestion stating the market will only go up ...
The real estate market is once again flushed with amateurs pushing prices up and manufacturing demand. They are borrowing to their limits. This time, the federal government is part of the problem by manufacturing low interest rates and printing money. In addition, household and personal income has been on the decline for years and is not keeping up with inflation in major factors of the economy, such as groceries, health costs, insurance, taxes, etc.
Some of the old pros are already noticing a new real estate bubble being created on top of the existing one that is still settling. What are the REALISTIC chances another bubble will burst in a year or so?
Be careful investors. Learn from history or repeat it.