Your Money > Your Home

What's next for real estate
Hot home prices have some asking if real estate is headed for a fall. Here's why the answer is no.
February 18, 2004: 4:01 PM EST
By Jon Birger, MONEY Magazine

NEW YORK (MONEY Magazine) - Worried about a housing bubble in your hometown? Well, just think how Los Angelenos must feel. Los Angeles and its environs are coming off back-to-back years of 20 to 30 percent increases in home prices.

Related articles
MONEY's Best Places to Live 2003
What is your home worth?
Betting on the house

Of course, one man's windfall is another's red flag. These days, there's no shortage of economists and housing analysts who see the hyperactive markets in L.A., New York City and other East and West Coast cities as sure signs that the irrational exuberance that once afflicted stocks has now permeated the market for single-family homes.

Throw in the possibility of higher interest rates, and the real estate market could be in trouble.

Continued for AOL members and MONEY magazine subscribers. Click here to read the rest of the story.  Top of page

  More on YOUR HOME
Your Home: Bracing for higher rates
Refinancing demand lags again
A rose is (not) a rose
Wells Fargo's scandals are hurting its bottom line
Prices are rising faster than they have in six years
Britain probably can't have what it wants with both the EU and the US

graphic graphic