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Real Estate Bubble statistics

By Erik Folgate

Everyone talks about the real estate bubble like it is a real, living human being.  They talk about it like this “bubble” has a mind of its own.  When I look at the statistics, it looks like things are not going to “pop”, they are just going to settle down.  Here are some statistics to substantiate that things are definitely settling down. 

This comes from the National Association of Realtors:

  • From Oct. 2004 to Oct. 2005 — Single family homes on the market increased from 4.3  million  to 5.3 million.  Basically, the supply is rising significantly, but the demand is not
  • From Oct. 2004 to Oct. 2005 — The change in number of homes sold went from 6.3% to 3.3%
  • From Oct. 2004 to Oct. 2005 — Some hot markets have cooled down in value appreciation.  Las Vegas went from 53.7% increase to 10.5% increase in value.  San Diego went from 32.5% to 6.3% in value

What does this tell us?  This does not tell homeowners to jump ship and sell their house right away.  It DOES tell investors to rethink the idiotic leveraged investments they made.  Do not let the market dictate the decision to sell or buy a home rather than personal reasons such as a new baby on the way, change in job, or early retirement. 

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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    Great Blog!

    Looks like the San Diego real estate market has done a 180 turn and is now on the verge of a multi-year decline!

    For a great article on the true direction of the real estate market as
    authored by a top San Diego real estate broker, visit:

  • http://www.forestcotton.blogspot.com/ FINANCIAL DIRECTORY

    The real estate bubble was something nobody ever expected. I once taked to a woman that bought a house in the year 2000 or about that. She claimed that her home had increased by a large amount in value. I said don’t you think or are you afraid that home prices might decline they do not always increase. Her response was oh yes they do it was as if I struck a nerve of disbelief or something this was during the housing boom. At that time the idea that homes would decrease in value was something that was not even thought of as possible..

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