The Real Estate Bubble

This 2004 article by Prof. Fred Foldvary seems prophetic in view of recent market developments. It goes a long way toward explaining not only the real estate bubble, but also the so-called “business cycle.” It acknowledges the role of monetary policies and banking practices in creating these periodic disruptions in the economy. If a sustainable steady state economy is to be achieved, both the “money problem” and the “land problem” must be solved. Highly recommended. – thg

2 responses to “The Real Estate Bubble

  1. The state of the UK housing market is very poor indeed, we are looking at a 33% fall in house prices accross the board.

    Most of the play is in rentals,

    Debt, fear and unfavourable loan rates are severely affecting the housing market, on this side of the water…


  2. I am a Florida Realtor and I can see an end to the decline in the real estate market comin i the next 8-12 months. There is more interest in buying, especially with the first time home buyers.
    With the voters approving the new tax relief amendment, there will be an increase in the home sales market and a rise in prices. The increase in the homestead exemption and homeowners being able to take their tax base with them will spur the resale market. This will save them hundreds of dollars monthly. With low interest rates, lower property taxes, the tax portability afforded by the new law and lower prices, there has never been a better time to buy.


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