Austin, Texas is riding the wave of an economic boom. Thanks to a combination of great weather, affordable cost of living, and popular events like South By Southwest and Austin City Limits, the capital of the Lone Star State has drawn in new residents and visitors pushing up real estate prices to record highs, but will the highs last, or is the Austin real estate bubble poised to pop? Continue reading
Tag Archives: housing bubble
Buyers are to Blame for the Real Estate Housing Bubble
It just baffles me how people want to blame bankers, real estate agents, loan officers, appraisers, etc.. for the real estate bubble. The real estate bubble, just like any other bubble was caused by a frenzied increase in demand from a new influx of buyers willing to pay more to obtain the desired item. The bubble bursts when everyone realizes what they’re doing doesn’t make sense and also realize that the price for their coveted item is unjustifiably too high. Throughout history, there are several examples of this happening. The examples I’ll focus on are: Continue reading