For years , we have all heard the so-called experts refer to the explosion in home buying and resultant rise in  home prices as a real estate bubble.

The rise in home prices from (roughly) 2001 - 2005 was unprecedented. The consumer percentage of homeownerhsip was unprecedented.

About 3 years ago, the Real Estate Bubble Burst! or did it ? 

I would argue no, the real estate bubble did not burst. In fact, it is leaking air. and herein lies the problem. 

Unlike, stocks and other investments. When a correction occurs, it happens (in most cases) much more dramatically. A stock market crash is on example.

However, real estate happens much more slowly. Many emotions are tied to real estate. Sellers do not just come in and take 30% of the listing price of their home. People reduce prices a (very) little at a time. Unless it is a short sale or foreclosed home. In which case, the home usually sells quickly.

Yesterday, the NAR reported a surprising rise in the sales of existing homes in July, surpassing expectations.  However, this was a result of buyers picking up homes at discounted pricing.

Clearly, consumers do want to buy real estate. The buyers just want better pricing.  If the housing bubble actually burst , we would already by at a bottom.

Instead, we have to wait until all the air leaks out ever to slowly.  - wexzilla