I disagree that the RE agents will “always” be able to argue that point, because the evidence is certainly mounting that the bubble is going to burst. By mid-June we should be seeing a precipitous decline in the prices homes are fetching (certainly MA, No. VA, FL have beaten us out of the “starting blocks”). Back in 2003, the bubble was just hitting it’s stride, and while I don’t discount that SOME people “made a lot of money” since then, I submit that the vast majority of them either parlayed their bets into more expensive homes that will decline dramatically (wiping out any “gains” they made) or “invested” foolishly in places like FL, MA, NV, or AZ.
I am concerned that you have given up on economic cycles, as you suggest “maybe the bubble won’t burst and prices won’t drop”. Have some faith, here, that the human emotions of greed and fear truly do rule the day and will push us back down in prices…perhaps far beyond our wildest (or tamest) expectations.
