Duck and Cover

Virtually every major business publication has predicted the collapse of the great real estate bubble of the 2000s. So far, the warnings of a collapse have not panned out. But, it is increasingly clear that it is a question of when — not whether — real estate prices will revert to historic norms, reflecting true demand for homes on the consumer side and traditional rates of return in commercial properties. That could come in a cataclysm or in an orderly readjustment, but history proves that anomalous prices for Dutch tulips, dot-com stocks or yet-to-be-built Miami condos cannot be ...

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