The general assumption surrounding the so-called housing
bubble is that it will burst. This may be accurate in as much as it denotes a
nationwide decline in property prices. The rate of decline is manifesting
itself already and perhaps a more accurate description would be a cooling
rather than a burst. By many estimates, the total decline will total 20%, which
would match market prices of two years ago.

A 20% overall decline in market value of real estate will
still represent a net gain for non-investor homebuyers who purchased properties
more than 2 years ago. In fact, it is this group that will keep the price drop
from exceeding the 20% mark. After all, people will still need a place to live.
The market will still exist. The question is will, real estate continue to be a
safe bet as an investment.

Real estate investment however, is not a single-track
business venture and therefore cannot be condemned as categorically
unprofitable. According to Lavoisier, in every losing proposition, someone has
to win. Who wins in the real estate game when homeowners lose? The players are
pre-construction builders, rental landlords, large landowners, and flippers.

Experienced investors will try to pick up properties at 70%
below market value in order to turn a profit. According to projections then,
real estate is probably no longer the safest investment option. Now, the three
causes of the housing bubble are low mortgage rates, loose lending practices,
and speculative investment. Supposing the investment originated as mortgage
salvage, the equation changes.

Pre-construction builders are struggling to find new
investors with the rise of materials. Perhaps the only remaining segment of the
real estate market that still manages to survive is the pre-foreclosure
investment market. Reputable pre-foreclosure investment courses like those sold
by Lance Young and other online gurus continue to sell very well and
testimonials pour in.

Of course, this investment alternative remains viable only
to those willing to take the time to learn the ropes and take the risk. For the
rest of us, the wisest real estate investment remains buying the house you plan
on living in for a long time.