| become absurdly high. That was four years ago. In speaking to realtors and mortgage financers, I learned some interesting facts about my particular area.
Now, of course, mortgage financers, realtors, and lenders want you to buy a house and finance the purchase of that home through their agency or bank. So my initial reaction to their reasoning as to why the housing bubble (at least where I live) will not ever burst was skepticism.
But this is what they said: A major university close to where I live is planning a major expansion. Over the next decade they seek to increase their student population by 10,000 and their faculty by 2,000. Thus, there is going to be demand for housing for at least the next ten years in this area.
Secondly, they explained that a lot of foreign money was pouring into the Southern California housing market. These foreign interests keep buying real estate and have showed no sign of slowing, no matter what the price.
These two factors alone are enough to help keep housing prices in my area fairly stable. I still think that we may see a 10% decline in real estate value over the next 5 years, but that is a far cry from the bubble |
