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 . . .