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| like everything else, is disseminated rapidly | | | | withdrawn real estate listings.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