Friday Housing News: Riders On The Bubble

Dana Dratch over at Bankrate advises nervous homeowners how to tame the mighty bubble. I seem to recall giving some similar advice myself back in the day. Talk about being ahead of the bubble curve, eh?

The news of the new home sales dropping is picking up steam faster than Ben Domenech getting fired. Stories like this are the reason why. I can't imagine sitting nervously in front of that debt clock, wondering what'll happen if I can't move my overpriced sh%^box in time to make a profit and beat the ARM reset. Who needs that grief?

My question for the legions of bubble riders would be this: Since the bubble is breaking into little "bubbletes," which markets will survive intact, and which will crash? Where will be the best place to land solidly in order to make smart investments in real estate? Midwest? D.C.? Bay Area? (Just kidding about that last one. :))

Or are we all living in Fairyland now? Is the best bet to cash out, hunker down, go long, and wait for the flattening that Thomas Friedman is so fond of to smooth out the housing market? Because as we all know, if you have to ask, you can't afford it...and right now it's looking like even formerly mid-range and low-end properties are falling into that category.

Image courtesy of the oddly appropriate Fairyland

Posted at March 24, 2006 05:17 PM

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Dana Dratch over at Bankrate advises nervous homeowners how to tame the mighty bubble. I seem to recall giving some similar advice myself back in the day. Talk about being ahead of the bubble curve, eh? The news of the new home sales dropping is picking up steam faster than Ben Domenech getting fired. Stories like this are the reason why. I can't imagine sitting nervously in front of that debt clock, wondering what'll happen if I can't move my overpriced sh%^box in time to make a profit and beat the ARM reset. Who needs that grief? My question for the legions of bubble riders would be this: Since the bubble is breaking into little "bubbletes," which markets will survive intact, and which will crash? Where will be the best place to land solidly in order to make smart investments in real estate? Midwest? D.C.? Bay Area? (Just kidding about that last one. :)) Or are we all living in Fairyland now? Is the best bet to cash out, hunker down, go long, and wait for the flattening that Thomas Friedman is so fond of to smooth out the housing market? Because as we all know, if you have to ask, you can't afford it...and right now it's looking like even formerly mid-range and low-end properties are falling into that category. Image courtesy of the oddly appropriate Fairyland