| The media was hyping the burst of the | | | | decline, will happen. |
| "real estate bubble" for a few years | | | | That doesn't mean that there are only |
| before we saw the actual decline. | | | | two ways to go, skyrocketing or |
| Although all real estate markets go at | | | | plummeting. There is a middle ground, |
| their own pace, 2006 saw a general | | | | and this middle ground will happen |
| decline in real estate value and number | | | | quickly also. Obviously we can't tell |
| of homes sold throughout the United | | | | the future but rapid real estate |
| States. Due to many indicators 2007 | | | | stabilization will probably occur in |
| should see a stabilization of this | | | | 2007. |
| decline. | | | | The deflating of the "real estate |
| In order to understand what will be in | | | | bubble" occurred because of past rapid |
| the future we need understand the past. | | | | market growth and the fear of the market |
| With a few exceptions real estate value | | | | bursting. A lot of people declined to |
| has been rising since the l950's. Since | | | | buy a home in 2006 because they thought |
| 2000 interests rates were falling | | | | that if they waited they would get a |
| rapidly, thus making financing easier. | | | | better deal. Sellers, who were |
| Combined with a generally strong economy | | | | accustomed to being in control, didn't |
| (the 2001 "recession" notwithstanding) | | | | see the real estate decline as permanent |
| this created a real estate market where | | | | and many decided to wait it out. Many |
| people felt they could buy. | | | | sellers put their move on hold rather |
| In the Internet Age, real estate | | | | than take a perceived loss. 2006 saw |
| information, like everything else, is | | | | many expired and withdrawn real estate |
| disseminated rapidly at the speed of, | | | | listings. |
| well, The Internet. This meant that as | | | | As people who deferred buying a home for |
| people sold their house slightly higher | | | | a while see that houses are not |
| than the previous comparable house the | | | | plummeting, like many predicted, they |
| next person knew about it that much | | | | will start coming into the home buying |
| faster. Before the Internet, with free | | | | market again. So the actual |
| online public records and online MLS's, | | | | stabilization will also happen swiftly. |
| it would take time for a general uptick, | | | | This is, in a large part, due to the |
| or downtick, in the real estate market | | | | Internet. 2007 will probably not see a |
| to disseminate to the surrounding houses | | | | meteoric rise in the real estate market |
| and areas. Now, with instant access at | | | | but it should see stabilization, with a |
| our fingertips, this real estate | | | | slight uptick possible. |
| information is gotten easily, and | | | | Copyright 2007 Cy Yablonsky. Cy |
| cheaply. | | | | Yablonsky is a Realtor Associate with |
| In this instant information age a | | | | ERA Othello Realty, you can reach them |
| volatile real estate market is | | | | at Homes for Sale in New Jersey or |
| inevitable. When the perception of a | | | | Marlboro NJ Real Estate. Feel free to |
| certain type of market (sellers' or | | | | reprint or use this article as long as |
| buyers') is created and the underlying | | | | you keep this paragraph and all links |
| components are there (economy and | | | | are live. |
| interest rates) then a rapid growth, or | | | | |