The real estate market is the next great bubble to burst. The only thing holding up the real estate market right now is the fact that folks who lost a lot in the stock market have been shifting assets over into the housing market.
The only think holding up the economy is people refinancing their homes to by more goodies.
When the housing market goes tits up, it will be ugly.
I don't think it will be apocolyptic(sp?), as some places won't get hit as hard as others.
The only thing holding up the real estate market right now is the fact that folks who lost a lot in the stock market have been shifting assets over into the housing market.I would tend to agree that this is taking place. Also, lower interest rates. However, that too has to end sometime.
To the financial industry that packages this BS as Asset Backed instruments it could be devastating. Since the GSEs have taken this not only nationwide but worldwide as well the old saw that real estate is local is now nearly defunct. In the old days real estate bubbles were locally isolated and they still caused enormous damage (think savings and loan debacle) now that the GSEs make the S&Ls seem like sober Quaker bankers.