James Stewart's Opinion on the Real Estate Bubble

I have always liked reading James Stewart's books and articles. Currently, he writes the Common Sense column in Smart Money magazine, which is also published in the Wall Street Journal every Wednesday. Today's column was a pretty good one regarding real estate. Here's a link to a column that is similar to the one in today's WSJ.

Nobody really knows for sure whether or not we are in the midst of a real estate bubble. I am of the opinion that some areas like California and Florida are in a bubble. Stewart says he is neither a buyer or seller of real estate right now. I liked this statement:

"Even if prices go down, you will still own an asset. If you enjoy living in it and can meet the monthly payments, what difference does the market value make?"

Personally, I think that is a rational approach. Anyway, read the rest of the article. I think you'll agree with me that he makes a lot of common sense!

Tags: Common Sense, Smart Money, Real Estate Bubble