Having lived and invested through the last stock market bubble (the dot.com bubble that popped in March 2000), I want to share with you the way I see the housing market and the lessons we can learn from past bubbles. The last housing peak in the United States occurred in 1989. I had just bought my house that I thought at the time was a good price. My wife and I planned to live in our home for the next 20 years, so we were not so concerned about timing the market, just finding a place to live and grow our family. A bit less than two years later, I went to refinance my 11% mortgage. My new interest rate was great, 8.5%, but the bank valued by house at about 20% less than what I paid for it. So much for the old saw about housing prices always going up.
http://www.gurufocus.com/news.php?id=1132
http://www.gurufocus.com/news.php?id=1132
