It has been a matter of great discussion now for the last year not

whether there was a bubble in the California real estate

housing market (there was), but whether it has really burst yet,

whether it only partially burst, whether that little pffft you heard

was the bubble actually popping, or whether it is yet to pop, or is now

set to re-inflate yet again.

Okay, so the housing market was getting ahead of itself Hard as

it is to remember now, there was a time only a couple of years ago when

people were paying bonuses to sell your property California.

When there were lotteries at new housing developments

because there were way more buyers interested than there were new

homes. When properties listed were sold the same day or by the

first weekend they were put on the MLS. When that happens, and it

was happening even in areas in the mid-west, there is a bubble.

Today, the real estate markets across the U.S. are flooded with homes

for sale. Sales are way down across the board. Which means,

except for those who have to buy something (for instance, because they

have moved) or in the case of first-time buyers, no one is buying

because it is almost impossible to sell their existing home in the

first place.

But a strange thing is happening. Prices aren't going down.

At least, not like one would expect in a real market bubble. In

fact, in a surprising number of areas, prices are rising What

this means is a couple of things. Except for individual sellers

facing their own special circumstances, there is no general

panic. People have already discounted their prices to a large

extent. And, it appears that, at least in the short term, people

are prepared to wait it out or at least wait a certain number of months

before discounting their prices any more.

Some psychologists (or economists posing as psychologists) have

attempted to diagnose this situation in terms of the ostrich sticking

its head into the sand, albeit an ostrich with a sub-prime loan that is

ticking down to zero. Other economists unafraid to openly

practice psychology talk openly using the term, ?denial.?

What it may come down to is how optimistic a person is. A person

who sees the glass as half full will say that the bubble is half gone

and is now just right. A person who sees the sky falling down and

the glass as half empty, will say that the bubble is only half deflated

and has another half to go before the bubble disappears.

I see it more in terms of a bottle of beer. At half full, I've

had half of a good beer, and I still have another half to go and then I

will simply order another beer and talk some more with that cute

cocktail waitress. Cheers.