Saturday, November 5, 2005

Housing Bubble

The housing market continues its upward slope.  In many parts of the country, homes have appreciated over 50% in the last five years.  It's only now that economists are predicting only about a 4% increase next year.  I think the Fed is also doing some things ( i.e. slowly increasing interest rates ) to help minimize the possibility of a housing bubble.  Hopefully, we won't hear a pop, but only a gradual return to more realistic growth figures.  A housing bubble burst would have a significant impact on the entire country, not just certain regions.  

What $300,000 will buy today
What $650,000 will buy today

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