Do you think the real estate bubble will pop or just deflate?

It will burst pretty bad.

The problem is that there are more and more people getting "interest - only" loans. You will NEVER build any equity in the house that way and your only going to have to make up the balance later on.

Plus, the price is getting to the point where it is unrealistic. With all the other costs associated with housing going up and the income of the average homeowner not going anywhere (and even down in some cases) and lack of any retirement nest eggs... things look really grim.

If the interest rates climb and deflation hits... the market will burst in a big way.Do you think the real estate bubble will pop or just deflate?
pop
deflateDo you think the real estate bubble will pop or just deflate?
It goes up and down. There was a buying frenzy because interest rates were low. That is normal. When they go up, people will invest their money. When they go back down, people will make big purchases like homes and cars.
First you have to believe there is a bubble. I don't. If anything, prices will sag for a moment, then continue higher.Do you think the real estate bubble will pop or just deflate?
Bubbles burst because the good is overpriced. When the price drops, it starts a stampede for everyone to sell before the price drops further.
I think it will flucuate. I think there will be a gradual slowing. Then it will go back up.
It will be going down fast.