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Real Estate
Reply to "I think the bubble is popping."
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[quote=Anonymous]Bubbles don’t have to pop. For example in 1989-1991 was brief downturn in home prices. Nothing like 2008. Was combo hangover stock market crash if 1987, high mortgage rates and the savings and loan crisis dumped a lot of bank owned properties onto market. Prices started slowly rising in 1992 pretty much right up to 2007 they rise every year on paper. However inflation adjusted home prices bottomed on 1996. The quirk couple happen again. Everyone is happy!!’ Let’s say home prices rose 2 percent a year next five years but inflation is 4 percent. Houses can rise in price and become more affordable and current homeowners still happy as paying down mortgage while prices rise 2 percent a year. Maybe that is what Fed is attempting!!! [/quote]
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