November 17, 2005

Deflating the bubble: A good thing

Can you imagine the pain of buying a $500,000 1 bedroom condo four months ago that is now worth $480,000 (ouch - $20,000 loss in 120 days) and will be worth $300,000 in two years (ouch - $200,000 in debt and now I'm bankrupt!)

People are going to be mad - at the world, at realtors, at bankers. But in the end, the only one to blame will be themselves.

What goes up, must come down. All good things come to an end. Nothing lasts forever. The supply of clich├ęs is endless and right now all of them fit the U.S. housing market: It had to happen sooner or later, the bubble had to start deflating or eventually it could have popped.


skytrekker said...

I bought a 1 bedroom condo (at least a townhouse/new construction) in Connecticut for 107K in 1989-sold it in 1999 for a loss of 30K-Taking a 20K haircut in a matter of months today hurts, seems many have and will take much bigger losses.

keith said...

10 years and lost 30k? What happened? And what do you think that place is worth today?

Do you own today? thinking about selling?

real estate listings said...

You have a great website here, and I'm going to tell all my friends about it.