[The Glaswegian]

anyone who bought a home during the last bubble in the early 90's was pretty happy ten years later. A bubble or short term price drop is only detrimental to those who can't hold the investment for at least five years.

[leaf errickson]

Folks.....the inflation rate is driving home prices. Until it slows considerably, prices will be only going up. Gas prices are up a dollar a gallon.....you think home prices are going to fall??

[ARCADIA]

A bubble or short term price drop is only detrimental to those who can't hold the investment for at least five years.

I am more concerned with the additional tax burden which may be imposed locally through the reappraisal of existing homes. There are those who purchased well before the bubble, especially our fixed income seniors, who may be forced to sell due to the added burden. That alone could add a cumulative effect, to the other market forces already at work, and push even more homes onto the market.

[Moonman62]

anyone who bought a home during the last bubble in the early 90's was pretty happy ten years later.

I know someone who bought a very nice home in 1990 and had to take about a 10% loss on it in 1999. If they could have held a few more years, they would have at least doubled the price. As it was the home was on the market for over a year.

In some markets these days it may take 20 years for some people to get their money back or 10 or 5. You never know, because there is no rule and you never know what kind of manipulation or stupidity is going to come out of Washington.

[surely_you_jest]

anyone who bought a home during the last bubble in the early 90's was pretty happy ten years later. A bubble or short term price drop is only detrimental to those who can't hold the investment for at least five years.

True enough. But the average American only holds a given house for about five years or so, last time I saw a statistic on this point.