Housing Boom or Bust?

During the past two years doomsayers have turned predicting a painful drop in real estate values into a multi million dollar industry.
They predict tremendous drops in the housing market for the next 5-10 years.
It is our opinion that prices will level off but, we don`t foresee any sudden decrease in pricing.
There is an assumption that there will be an overnight change that will lead to a sharp correction. But I don't think we're in a bubble, I think we're in a boom.
In fact, database search couldn't be completed using the words "housing" and "bubble" for the last five years because there were too many articles to count.
This past June, there was an all-time high of 774 articles referring to a "housing bubble." And while an eventual drop in real estate prices is likely, and a collapse in pricing is definitely possible — especially among overextended real estate investment trust companies —so far U.S. property values have been resistant to other economic woes. Sales and prices continue to hit nosebleed levels, which has fueled yet more hysteria in the press.
Unit sales of Ft.Lauderdale and Miami condo`s rose 15%-20% with the average condo selling now in the $300K range!
All this bubble talk is predicated on the assumption that mortgage rates will rise quickly. Make no mistake that Fed Chairman Greenspan will continue to raise rates,but at these levels interest rates are still affordable to many 1st time homebuyers.
Many Wall Street traders have made bets that mortgage rates would rise, based on the fact that new home sales have been on the decline during the summer.
It all depends on what region that you are living in. Housing prices in Florida as well as purchasing land are still excellent investments and a great way tdiversifyfy.
We`re looking at Central Florida currently, and feel that the boom in this region will continue for the next 10 years. Job growth is exceptional and will continue as many companies from the North relocate.