Real Estate Booms and Busts

All of us remember the recent real estate boom that lasted from 2002-2006, even though it has been largely overshadowed by our recent bust.

But do you remember the real estate bust of the late 1980s? If so, good for you. And do you remember the booms of the 1820s, 1880s, 1920s, and 1950s? What about the bust of 1926?

In recent history, booms and busts have followed roughly 20 year cycles. Our current bust has been no different. The good news is that people still need places to live, so real estate is an enduring commodity. There will always be demand (whether for renting or owning). However, at the moment, the supply far outweighs the demand and that will continue to put downward pressure on prices. But real estate will recover. It always has. It may take more time now than it used to, but it will recover.

To read more about real estate booms and busts, check out page 8 of the September issue of the Tallahassee Board of Realtors' magazine HERE.