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The Coming Crash in the Housing Market
: 10 Things You Can Do Now to Protect Your Most Valuable Investment
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Pop!: Why Bubbles Are Great For The
Economy
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Cash in on the Coming Real Estate
Crash: How to Protect Yourself From Losses Now, and Turn a Profit After
the Bubble Bursts
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Timing the Real Estate Market : How to
Buy Low and Sell High in Real Estate
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Collection Agency Harassment: What the
Debt Collector Doesn't Want You to Know
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Debt Collection Secrets: Everything the
Debt Collector Doesn't Want You to Know
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Grow Rich with the Property Cycle
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Property Management for Dummies
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How to Invest in Rental Properties:
Without Mortgaging Your Soul
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Mortgage Encyclopedia: An Authoritative
Guide to Mortgage Programs, Practices, Prices and Pitfalls
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The First-time Homeowner's Survival
Guide: A Crash Course in Dealing With Repairs, Renovations, Property Tax
Issues, and Other Potential Disasters
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The Creature from Jekyll Island: A Second Look at the
Federal Reserve
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Prior Bubbles and Busts
- The Florida Real Estate mania of the 1920's:
In less than 4 years, Florida property more than quadrupled it's value.
By 1925 the foundation began to crumble. Property was so expensive that
no new investors could get into the market. Home owners began to panic
and an avalanche of properties flooded the market. Thousands of
homeowners & investors were left holding the bag and eventually had to
file bankruptcy.
Read more about the
1920's Florida Real
Estate Crash.
- 1929 Stock Market Crash: The Dow
Jones rocketed from 60 to 400 from 1920 - 1929. Thousands of millionaires
were created almost overnight. Stocks were seen as a sure thing and as
something that always went up. The Fed finally stepped in and by 1929 has
raised interest rates several times. Finally something snapped in the
heart of share owners and panic selling began on October 24th, 1929.
Investors finally realized that the whole stock market was an enormous
bubble and that the stocks really were not worth what people had been
paying. By the end of October, the Dow Jones sank from 400 to 145. Over
$5 billion worth of stock shares had tanked in a matter of days!
Read more about the
1929 Stock Market Crash
- 1987 Stock Market Crash: Billions
and billions of dollars vanished from the Stock Market in one day! Almost
every investor panicked and tried to sell off all of their shares
immediately which further drove stock prices down. Some wiped-out stock
owners even shot their own stock broker, even though the brokers had no
control over the market!
Read more about the
1987 Stock Market Crash
- The NASDAQ Bubble: By late 1999
the stock market had become overwhelmed with tech stocks. Many of these
were very new companies just getting started in the electronic market
place such as Pets.com. Stock prices for hundreds and hundreds of new
companies became worth billions!
In early 2000 the foundation crumbled! The NASDAQ crashed from 5,000 to
2,000. Hundreds of stocks became worthless and hit rock bottom. The
market continued to slide into 2002 and bottomed out around 800! A
recession ensued so the Fed started cutting rates to stop the bleeding.
The result of the Fed rate cuts and investors seeking something new to
pump money into is now the HOUSING BUBBLE!
Read more about the
NASDAQ Bubble
- Japan 14 year real estate decline:
Sparked by low interest rates, Japans average home value more
than doubled from the early 1980's to 1990 (sound
familiar?). Now, over 16 years after prices peaked, home
values are still declining and are nearing the average price of
1980!!
Bubble
Life-Cycle
Cycle of the bursting housing bubble: Fear comes after denial!
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Several U.S.
cities saw big home price dips in 1980's and 1990's housing busts!
- Los Angeles from 1990 to
1996 recorded over a 20% drop in median
home sale prices.
- San Francisco from 1990 to 1994 prices fell by almost 10%.
These are examples of what happens in areas where people
continue to pay too much more than a homes true value. The chart below
includes several other Localized declines:
A tale of 5 U.S. cities in the 90's
real estate bust:
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