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Originally posted by zf0enix
Bob, this may be out or your area of expertise, but what are the expectations on the real estate market nationwide? I know that there are rumors of the bubble getting ready to pop, but I'm just curious. I'l looking at buying some rental/rehab properties but don't want to get caught with my pants down, not being able to sell or occupy.
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I think it depends on the region. I know that SF has burst to some extent, and there's some anecdotal information to suggest that the northeast is softening. Overall, though, it's not really going to "burst" until the price of money stops getting cheaper. So long as people can keep refinancing their mortgages, things will keep up fairly strong. On the other hand, once the effects of this tax cut sink in, the downward pressure on interest rates will probably reverse as the government borrows more money. That will probably be the trigger. I don't know that I expect a hard crash like the 80s, though, probably a more gradual softening.
Bob