How to "POP" the housing bubble

In todays market the scary word is such a seemingly mild thing as a bubble. The good thing to know is that bubbles are susceptable to outside forces and in knowing that, gives us some control. The key factors in leading to the "Bubble" is an over appreciation of some market areas and a relaxing in the current buyers willingness or ability to keep up. However many of the markets are not affected by these factors, but a bubble was created from the media talking about areas that are affected. This media information has created a stigma of fear with buyers across the country that the sky was falling when in fact this is really not the case at all. The best way for the market bubble to disappear in these market is for people to go on with their lives and purchase the home that fits their needs. Interest rates are still fantastic. It wasn't too long ago when 13, 14, 15% or more was the considered good interest rate. Now even those of us with less than outstanding credit scores are able to get rates well below those of days gone by. Banks are still willing to give loans, sellers are willing to negotiate, and Realtors are working harder than ever to get you the best home for your money.

So, if you want to beat the housing bubble, take control. You have the power. If not, keep buying into the hype and you may just get caught inside another bubble. The bubble of remorse, because you didn't buy the home before the market turned back around and you now will pay top dollar for the same home that you could have purchased now for considerably less.

Mike Gambino is part of Prudential Patterson Realtors® and can be reached at (800) 321-8586 or contacted by e-mail at WeCanSellHomes@sbcglobal.net .  You may also visit us at http://www.wecansellhomes.com/

Prudential Patterson Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

While the contents in this article will apply in most states, they may vary in your particular locale.  Mike Gambino is a licensed salesperson in Missouri.