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Real Estate Boom Now History

Great piece on the real estate market from back in 2005, via Jim Lehrer news hour on PBS. Now the boom is over, just history, it's interesting to read some of the stories. There are always people trying to make a quick buck and get on board the train, but the people who really make money get in early and put in the work by to doing their research.

Over time, it has to be reconciled with income growth because if you buy a home, you're generally borrowing money. And if you're borrowing money you have got to pay it back, and that's related to how much you earn over time, so at some point there has got to be a closer fit. But I think, given those fundamentals, you're more likely to see stagnating prices as opposed to falling prices.



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