REI Wealth Monthly Issue 10 | Page 49

THE CREDIT CRISIS: AN ECONOMIC ROLLERCOASTER RIDE RICK TOBIN From Bust to a more steady Boom? How many homes between 2007 and 2010 dropped in value between 20% and 50%+ plus due to the Credit Crisis implosion? Even with recent price appreciation over the past year or two in various regions, many properties are still well off their housing peak prices back in 2006 or 2007. However, a slow and steady economic recovery may last a lot longer than a rapidly escalating price “boom” which we have seen in past economic “Boom and Bust” time periods. How long will median prices continue to improve regionally and nationally? How long will “Quantitative Easing”, and other bailouts, continue at the same mind boggling multi-trillion dollar pace? How long will interest rates continue to hover near historical lows? Are these financial gains short term or long term? The answer is “Only time will tell” because there are truly too many economic and financial variables out there today to really make an educated guess.