The term "Housing Bubble" came and went much like its name. For some, the term was a bit puzzling a first, after all, who knew people lived in bubbles. But, as we all learned, the term is actually an economic reference to the rapid growth of a commodity or investment fueled by easy money, greed, and unrealistic expectations for profit. Bubbles don't last very long, they simply swell up with overinflated investing and then burst when other economic factors, the atmosphere of the marketplace if you will, can no longer support them. So the housing bubble came and went, like a burp in church, impolitely disappearing with a few billion dollars of home owners, lenders, real estate investor's money. We are now living in the aftermath, a recession that is teetering on the brink of depresssion, that is likely to last for a decade or more.
But this doesn't mean that real estate isn't a good investment any longer. It means that the aforementioned stakeholders have to adjust their thinking about the market and its infernal workings. One thing we have learned, hopefully, is that real estate, housing and homes are not simple investments that are guaranteed to pay off at some future date. One cannot think about these in the same way, or at least without grimacing a little about the risk and loss of reckless investing in unsustainable markets. For the astute, or rather, informed investor, lender, home buyer and seller, much has been learned since the collapse began in 2006. But learn we must and investing will continue in a smaller, leaner market place.
Real estate is a recoverable asset, one that will take a beating for a while and then recover its value. Markets like Dallas and Houston are proof if that. Just stick with it long enough and the good times will roll once again.
I've written enough articles about buying and selling homes that I thought it might be a good idea to start a new Zone dedicated to the topic. It's an impartial view, as I'm neither an agent or a broker. Investing in real estate could be best left to those with money to invest, but writers can provide advice and opinion for free. That translates to being objective, if that's possible. Anyway, I'm going to call my new zone the New Home Zone. Check it out, if you will.
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