Saturday, December 10, 2005

They Ran Out of Stupid People

Well, if Business Week has stopped referring to the housing bubble as a hypothetical, then it must be real.

Some choice quotes:

Psssssfffffft. That's the sound of the air finally leaking from the real estate bubble in Loudoun County, Va.

What's happening in Loudoun is a rapid shift in psychology -- a classic sign of a market turn. The buoyant optimism that fueled speculation and expectations of ever-rising prices is now succumbing to the fear of being left standing when the music stops. Real estate, the hottest play of the century in Loudoun, is rapidly cooling.

The same signs of a slowing market can be seen in hot spots across the country...

Loudoun's real estate community insists the market is merely reverting to a more normal state. "We're coming back to more of a balance," says Karen Overheu, a Long & Foster Realtor with listings in Loudoun County.

"There's another explanation", says insurance agent Joe Kelly... "They ran out of stupid people."

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