I don't know where you live, but the "bubble" in housing has already been deflating for some time now. Mortgage applications are way down, and inventory is way up. Home sales in our area (California) are down 31% fromlats July! It is a "buyer's market." Those who have nice homes with equity don't have to worry. The people in trouble are the ones with ARM and negative ammortization loans. If you think the homes are going to depreciate 20% I think you are wrong. We are looking at a soft landing. Homes will still appreciate, but at a much slower rate. I look at a home as a place to live, and not an investment! You can make more money in the stock market!
Sentiment is an odd creature. When everyone is convinced an investment is going to the moon, the momentum can seem unstoppabble but once the momo crowd senses the party is over it becomes a mad scramble to get out and only after a considerable correction in price occurs do value investors create a bottom.
I can push a button and sell my EZPW and CSH positions for $20 in commissions. Try doing that with real estate.
You crack me up! I don't intend to sleep on the floor of the NYSE. The don't allow riff-raff like me in those swank joints! Alan Greenspan began raising interest rates over two years ago with the intention of killing the housing boom. Money had become too cheap and people were making a ton of dough flipping homes. They have successfully ending the greatest real estate boom of all time. However, I don't think it will crash. A guy down the street from me is selling his home for $1.5 million. He bought it five years ago for $1 million. That is $100,000 of appreciation per year. Not bad heh? If he holds onto the home for another 5 years will he double his money? I think 2007 will be a better year for the real estate market than 2006, as the fed will begin to lower rates, and people will be able to afford "more" of a home. I could be wrong, but it is fun to speculate. What does this have to do with EZPW?