Discussing the potential bubble yesterday with a client, we noted some of the parallels between the “irrational exuberance” of the tech bubble and the “froth” in today’s housing market.

1) Local Salaries are not keeping pace with housing prices.
2) There is a limit on how many people from other markets can afford to move to the Central VA area.
3) Look at how many REALTORS there are now – as everyone was moving into day trading, so are many moving into the real estate market. The misconception that this business is “easy money.” It’s not.
4) Everybody is talking about real estate, refinancing, etc.

Active –
Contingent
Pending
Sold
Withdrawn

I am not sure what to think about the dramatic increase in the number of Withdrawn listings.