I remember writing about the bubble in my blog back in 2005 ( http://chir.ag/200510301225 http://chir.ag/200510301225 ). Though I wrote that 9 months after this

I remember writing about the bubble in my blog back in 2005 ( http://chir.ag/200510301225 http://chir.ag/200510301225 ). Though I wrote that 9 months after this article was published, nothing really had changed - prices were still rising, home sales were strong, everyone had equity. I had been monitoring the housing market since early 2004 and saw tons of articles on both sides of the argument. I bought a house in June 2005, being fully aware that there is a big chance the bubble could pop. As a result, even though I could've gotten a bigger house or taken out a home equity loan, I bought the smallest house I could be comfortable in for 5+ years and did not take out any loans. Meanwhile my coworkers who were also in my salary range bought houses 25-50% more expensive. From the article: > That would be unpleasant news for home sellers, but good news for buyers. And what sellers lose when selling one house they often save when buying another. Any risk of loan defaults would be negligible. When a lot of sellers lose, it brings down the market. > At the national level, what could possibly kick national home prices downstairs? There is nothing to suggest massive job loss ahead or a huge oversupply of new homes. When there are a lot of sellers and too few buyers, there is a huge oversupply of homes (new and old). You're right that nobody can tell the truth about future. E.g. who knows if 1 bitcoin is going to be worth $100, $1, or $1,000,000 some day. However, the author was clearly ignoring the signs that worried a lot of people, including myself.