Our mission at Dr. Housing Bubble is to provide a candid account of what is going on in today’s housing market. We take a critical look at the policies that have created one of the largest asset bubbles ever known to mankind.And when we spot a 500 square foot box selling for $500,000 we are definitely going to bring it up.The housing market and all things real estate have become a national sensation spawning television shows, quick riches, and an absolute disregard of financial prudence.Think there is no debt bubble in this country?
So what are some frequently asked questions?
Are we in a housing bubble?
Absolutely. A bubble is defined by speculation and prices not reflecting the underlying fundamental value of multiple things in the economy. Currently, housing prices have no fundamental basis for what they are selling for. Update from 2007: Well the bubble burst and in many areas of the country prices are now back to more reasonable levels. In some places in California low rates, investor demand, and low rates are spurring manic like behaviors.
When will the bubble burst?
It already is. The subprime implosion is an example of the housing bubble popping. The actual time frame from peak to trough may be a few years out. Update from 2007: Currently home prices are rising in many markets for a different set of reasons. Low interest rates, investors, and low supply. In many states around the country home prices are reasonable based on low rates and prices.
Why do I make more and still feel poor?
You can thank the massive inflation that is underreported in the press. Massive debt is not a road to prosperity. The declining dollar simply reflects the shadow inflation in housing, food, medical, energy, and other daily costs of living.
Where should I invest for a prosperous future?
Read the articles and understand the fundamentals of what will happen in the next decade. There will be many opportunities for savvy investors.
We are happy to have you on board here at Dr. Housing Bubble. We understand that many of you are looking to buy or sell in the near future and want to provide you with tools to make a smart and intelligent investment. Find out How I learned to Love Southern California and Forget the Housing Bubble.