real estate market

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Many speculators participated in one of the greatest run-ups in real estate market prices in history, resulting in a bubble and reaching their peak in the year 2007. In fact, the real estate market was functioning a bit more like the stock market does, with irrational exuberance and quick in-and-out day trades in the form of "flipping" for quick gains.

As the real estate market peaked price-wise, folks were still borrowing themselves to the hilt and spending ever so freely, feeling an imagined wealth from the supposed increase in the value of one of their greatest assets, their homes. In the mania, little consideration is given to the fact that prices can come down, but when they do it can be quite drastic. In the real estate market, most people fell prey to the common misconception that prices only ever go up.

Some blame the Knighted-Bubble-Blower, Sir Alan Greenspan, for the fallout, hailed in 2001 for bringing us out of recession by lowering interest rates to an artificial rate of 1%. This may have spurred the onset of the real estate market sub prime debacle with the liar's loans and other unethical practices.

Bloggers speaking about the real estate market can be found at sites like Denver real estate and realestateweblog.

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