Is the real estate bubble ready to burst? The question is again doing the rounds in Las Vegas
and this time around it’s not just the analysts but even the lay man who is talking
about it.

This time around it not whether it will burst but when it will burst. Over the last 5 years housing prices in Las Vegas have been booming and reaching record levels in growth. Investors and speculators have turned to real estate to make quick returns on their investment.

Banks and lending agencies having lending money at very easy rates which means there’s more money in the market and fear that if people don’t a home today they would never be able to afford one is driving even otherwise sane people to buy homes at high rates.

When the market takes a downturn which it eventually will as the current rates of growth are quite unsustainable the short-term profit makers will be to first to get out of the market creating an excess inventory as buyers will then wait to see how low the prices will go before the market stabilizes creating more uncertainty and triggering a crash.

This entry was posted on Wednesday, October 12th, 2005 at 4:05 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.