And the most important of these arguments is that all real estate, just like all politics, is local. On the other hand, nothing in this argument precludes the notion that there cannot be a local bubble. Read the whole thing. Posted by The Daily Pundit at June 8, 2004 01:25 PM | TrackBackA lot of "hoopla" has been floating around the news media lately about the "bubble theory" of real estate, that is, the theory that the real estate market is going to burst. In my opinion, this theory has no merit.
First, understand that there are three basic premises that undermine the discussion of a real estate "bubble":
1. There is no "national" real estate market
2. The real estate market doesn't explode or crash
3. The market has limited relevancy to the shrewd investor.
I've been disparaging the "housing bubble" notion for months, and I'm not even in the real estate biz.
http://billhobbs.com/hobbsonline/003928.html