Traditionally, housing markets are not as prone to bubbles as other financial markets. So the question remains: Should we be worried that we may be sliding into the next real estate boom or bubble?
Perhaps we should. But perhaps far more important is the fact that all of today's strong market fundamentals could be worked with creative minds that want to create- with perhaps a few twists and turns- a universe of mortgage loans that works to the benefit of the maximum number of real estate buyers and doesn't do damage because of its "artificial" attempts to create the ideal world with the best interest rates today...with little regard for the effect of higher rates in the future.
We may never hear the last word about the slippery subject of booms and bubbles. Hopefully though, we can use the discussion of the subject to improve our real estate market- as more homes sell and fewer are withheld from the market- will itself smooth out into a more recognizable place in which value rise more slowly and homes sell in less frenetic transactions. Meantime, to buy or sell real estate in this marketplace, avail yourself to the best professional guidance possible from your real estate and mortgage professionals.