Kudos to the LA Times on this article about the real estate bubble. People are buying dirt in the desert as an investment. It’s really quite sad because stocks have been doing quite well over the past three years while real estate is looking mighty toppy right here.
Remember, tops are formed when no natural buyers are left and the speculators are left holding the bag and try to sell. With 3% down loans on investment property, it’s no wonder that real estate values have been skyrocketing. Once those dissapear, there’s nothing but downside for real estate values.