B E B E R E

What goes up must come down.

Interesting article in the NY Times about rising house costs in urban areas and the real estate market's //s to the dot com boom in the 90s.

Watching the rising home prices in my neighborhood (floors of houses are now being sold as condominiums for the same price as what the entire house would have gone for two or three years ago) has been giving me the feeling that we could be heading towards something similar to the real estate bust in the mid eighties here. People's attitudes towards what I think is a bubble is surprisingly like that of the tech/stock bubble that burst in the nineties: Prices won't go down, this has been going on for some time, it'll keep continuing. I don't believe it. Eventually, enough people are going to either not be able to or refuse to pay $600,000-$700,000 for something worth perhaps $150,000.