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April 24, 2001 
Real Estate Bubble Turns To Rubble In our just-released bonus issue of Safe Money Report, we detail the coming implosion of the real estate market in the U.S. In fact, we are beginning to see evidence of it in California's Silicon Valley. As one of our readers from Northern California tells us, "this area was ground zero for the tech bubble and all that easy money helped push up real estate." Now that the bubble has burst for tech stocks and the layoffs have begun en masse, we're certainly not surprised to see real estate losing steam in that area. And, California is just the beginning. Don't be fooled into thinking that real estate in other parts of the country won't be as vulnerable as in the Bay Area. Just as the economic slowdown affected certain sectors quickly but took more time to hit others, the real estate implosion will also take time to work its way across the U.S. As more Americans face layoffs and lose money in the stock market, some will be forced to sell the monster houses and vacation homes they bought in the heyday of the tech bubble and move into something more affordable . Others will be forced to sell their homes to repay the loads of debt that they've taken on during the last several years. Whatever the reason, the end result will be a glut of homes on the market, and falling residential real estate prices. |
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