Oh the Market!!! - Spring 2005

Fueled by strong national economics featuring low interest rates, low unemployment, weak dollar and baby boomers desiring comfortable retirement locations; the real estate market has sustained feverish activity and record setting prices for three years.  There is much discussion comparing this real estate cycle to the stock bubble in the late 1990’s.  Locally, the more reasoned discussion speaks of a leveling of real estate prices rather than a bursting of a bubble connoting value deflation.  Predictions of when the leveling will occur, range anywhere from one to five years!  What does this tell us?  The demand will remain strong but prices are reaching an apex and will limit out.