LAN Field Real Estate

Real estate market was considered as one of the finest business in which people are making heavy profits but now this situation has taken a 180 degree change. The main reason for this is that the psychology of the real estate business has completely changed. From the last five years the prices of different properties has risen dramatically and people have earned tons of profit from it. So, more number of people invested their money in order to earn as much profit as they can.

Herd mentality: it is the term given to the psychology of any bubble market, whether it is a real estate market or a stock market. This mentality has occurred number of times in past:

i. US stock market bubble at the late 1990’s
ii. Japanese real estate bubble at 1980’s
iii. US railroad bubble in 1870’s

This herd mentality had totally taken over the real estate business until recently.
This bubble will continuously rise until there are people who are interested to buy property even at the higher prices. If there are less people interested then this mania will gradually disappears. With the changing mindset of the people regarding the real estate property, speculators & investors are getting frightened that they will get nothing from such a real estate which does not attract any buyer. Due to this they are buying less property and at the same time selling their investment properties also. This type of flood of real estates houses will not gradually increase the number of houses readily available but also there will be a decrease in the real estate values.

There was a survey that showed that 7 out of 10 people think that this real estates bubble will burst before April 2007. This thinking will cause the end of this real estate market boom.