When The Bubble Bursts

Good news: Housing doesn't necessarily behave like the stock market.
June 15, 2003, 11am PDT | Chris Steins | @urbaninsight
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"A housing bubble takes place when housing prices are pushed higher than an area's economy can adequately sustain. At such a time, incomes are rising and jobs are increasing. Later, when the economy is disrupted, jobs are lost and incomes fall. The number of prospective buyers who can pay inflated housing prices drops � and so does home value... This drop can be a major financial setback to homeowners expecting to cash out on the value of their homes."

Thanks to Chris Steins

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Published on Saturday, June 14, 2003 in Planning Magazine
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