Home builders and the REITs had been hit hard this past week. People are worrying about the interest rate and even the insider had been selling heavily which cause even more panic in the market. Is this it for the real estate boom? I think not. There are too much skepticism and concerns to represent the top. I think we will continue to see the housing prices continue to go up because people feel safer with real estate which leads them to buy 2nd and 3rd homes or move up into a bigger house. At the same time speculation from the amateur investors continue to get stronger. Of course, the bubble will burst eventually and here are some of the contributing factors that I think will cause the bubble to burst.

1. 1. Creative mortgage products
2. 2. Increasing number of amateur real estate investors
3. 3. Increasing home owners’ debt

This entry was posted on Monday, August 15th, 2005 at 1:37 pm and is filed under Stock. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.