Wednesday, December 20, 2006

The Fizzling Real Estate Boom

The last five or six years have been some of the best in real estate for a long, long time. There is little doubt those days are over, but what does this mean to you?

The Fizzling Real Estate Boom

For the last few years, we have seen an incredible surge in the real estate market. While some states such as Texas and Colorado missed out, most states showed hyper appreciation and sales rates. The combination of incredibly low interest rates and a solid economy created a frenzy in the market. This frenzy led to such amazing situations as homes in Las Vegas appreciating at rates of over 25 percent in a single year. A single year!

As with a bubble you might blow from gum, the good times had to come to an end. Recent reports from various credible sources show the real estate market slowing down. In many places, it is actually showing a reverse trend where home values are dropping instead of just slowing down. As a homeowner, what does this mean to you?

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