IN BUST WE TRUST?
With the giddiness of the price increases of the early 2000s, we are seeing a price adjustment.
By the summer of 2006, the U. S. housing inventory hit 4 million units - double its level in 2000.
The recent boom and bust in real estate could ultimately benefit the industry and the economy
at large. 1. In the past few years formerlly blighted urban areas have been renewed,
2. the flight from overpriced markets has yielded a long overdue internal
redistribution of the country’s population,
3. more sophistication of American’s knowledge in home financing,
4. greater availablity of information about all components of the house sale
process,
5. price wars are returning affordability to real estate consumers.
For now the housing and real estate bubble served as an important catalyst for the growth
at a time when one was sorely needed.