being in real estate I dont think it is overblown...here in Vegas and down in Phoenix the speculation blew the dot come bubble away....cocktail waiters and bartenders own ten houses with no money in them and they are sitting vacant ...its HUGE!
btw there is nothing the fed can do to help these home owners they cant refy cuz they wont qualify!!!
I always like to interview the locals when I travel but especially when I'm in Vegas.
A year or so ago, One taxi driver said he had moved there a year earlier but couldn't afford a house.
But sadly he lamented that a year later the prices had doubled and he was really locked out.
Another owned a mobile home which was increasing in value.
A third owned a home and had made more money in appreciation than he was making working.
How are rent prices holding up so far?
This real estate bubble bursting happened here in Tulsa years ago.
There were entire neighborhoods of vacant homes owned by the government (HUD, etc).
American Airlines mechanics were picking them up for a few thousand dollars (under $5K) and then renting them on section 8 (More Government) for easy money.
Section 8 has tightened up and there's no easy money to be made now.
Also gang activity in these areas makes being a landlord undesirable.
One of my clients owned one of these, Last year one of his tenants had her head removed with a shotgun.
